annual report polkomtel s.a. · cost control. yours sincerely jarosław bauc president of the...

Annual Report Polkomtel S.A.

BThis document contains information on the

most significant events occurring in the

financial year 2008, which significantly in-

fluenced the operations of Polkomtel S.A.

company. It presents also information on

the market position of Polkomtel S.A., its

important technical achievements and

the financial situation in 2008.

Introduction

POLKOMTEL S.A. – ANNUAL REPORT 2008

T h e l a r g e s t

5

n e t w o r k i n P o l a n d

4 POLKOMTEL S.A. – ANNUAL REPORT 2008

Letter from the President of the Management Board . . . . . . 06

Management Board Members . . . . . . . . . . . . . . 08

Supervisory Board Members . . . . . . . . . . . . . . . 09

Shareholders of Polkomtel S.A. . . . . . . . . . . . . . . 09

The mobile telephony market in 2008 . . . . . . . . . . . 10

Strategy and market position of Polkomtel S.A. in 2008 . . . . 14

Cooperation among Operators . . . . . . . . . . . . . . 18

Customer service . . . . . . . . . . . . . . . . . . . 24

New products and product innovation . . . . . . . . . . . 28

Technological innovations . . . . . . . . . . . . . . . . 32

Sales . . . . . . . . . . . . . . . . . . . . . . . . 34

Infrastructure and network development . . . . . . . . . . 36

Employees . . . . . . . . . . . . . . . . . . . . . . 40

Operating results and financial statements . . . . . . . . . 44

Selected financial data . . . . . . . . . . . . . . . . . 47

Statutory Auditor’s opinion . . . . . . . . . . . . . . . 48

Abbreviated financial statements of Polkomtel S.A. Company . . 49

Balance sheet – assets . . . . . . . . . . . . . . . . . 50

Balance sheet – liabilities . . . . . . . . . . . . . . . . 54

Profit and loss account . . . . . . . . . . . . . . . . . 54

Statement of changes in equity . . . . . . . . . . . . . . 56

Cash flow statement . . . . . . . . . . . . . . . . . . 58

Corporate social responsibility and sponsoring activity . . . . . 60

Awards . . . . . . . . . . . . . . . . . . . . . . . . 68

Table of contents


T h e l a r g e s t

POLKOMTEL S.A. – ANNUAL REPORT 2008 7


Dear Sirs, I am happy to open this report by stat-

ing that at the end of 2008, the largest

number of Polish mobile telephone

users chose the Polkomtel S.A. net-

work. This means that Polkomtel S.A.

became the operator of the largest

telephony network in Poland, and

came ahead of the second largest

player who dominated the market

since 2006, winning by almost three

hundred thousand customers.

A chievement of the position of

market leader in terms of custom-

ers’ number is a particularly valuable

success, given the current market

environment. 2008 was a year full of

marketing challenges – new entrants

appeared in the market, the attitudes

and behaviors of consumers changed.

Other significant factors included the

worsening macroeconomic situation,

whose consequences were visible al-

ready during the last quarter of 2008,

as well as market maturity and asym-

metry in settlements with the opera-

tors established by the regulator.

A s we expected the weakening

growth dynamics of the telecom-

munication sector due to the above

factors, we took appropriate steps at

the appropriate early moment. This

action allowed us to reduce the nega-

tive consequences for the Company.

In 2008, Polkomtel S.A. remained

the leader in the most valuable seg-

ment of contract customers, whose

number, compared to the same pe-

riod of 2007, grew by 13.1%. It is

worth stating that almost every sec-

ond Polish customer of the mix type

offer uses MixPlus. Our Company has

also strengthened its leading posi-

tion in prepaid services, which was

largely due to the introduction of the

new brand, 36.6.

I n 2008, also in the mobile Internet

access, Polkomtel S.A. maintained the

leading position, by refreshing the

brand image and the product offer.

According to research conducted by

independent entities, Polkomtel S.A.

offers the fastest wireless Internet

access in the market.

T he successful year proves our flex-

ibility, openness and reactivity to

signals coming from the market. The

„Minute Contract” or the aforemen-

tioned offer 36.6 are only some of

the solutions introduced in 2008,

which enabled the customers of Plus

to optimize the use of services in

line with their needs and financial

capacities.

T he expressive Polkomtel S.A. im-

age has, for years, consisted in prod-

uct innovation and an innovative

approach to the market. 2008 was an-

other year in which we offered many

new solutions. The launch of the 36.6.

brand with the Chill Bill offer brought

Polkomtel S.A. into the mobile ad-

vertising market, as the first mobile

telephony operator in Poland. The

„Muzodajnia” music store, launched

in 2008, is another one of such inno-

vative projects. The opportunity of

paying a subscription fee for music

downloaded not only to the compu-

ter, but also directly to one’s mobile

phone, eliminates the price barrier to

purchasing legal music pieces. More-

over, the Company, as the pioneer of

mobile payments known under the

brand “Płać komórką” (“Pay with your

mobile phone”) has developed this

attractive offer by adding another

practical solution – the opportunity

to purchase city public transport tick-

ets. In response to customers’ needs,

we have also enriched the range of

information, entertainment and loca-

tion services.

A ttractive and diversified product

and services offer, and the grow-

ing subscriber base, allowed us to

achieve satisfactory financial re-

sults at the end of 2008, including

growth of revenues and net profit in

comparison to the past year. This de-

serves special emphasis in the situ-

ation of decreasing retail prices and

unfavorable changes for the opera-

tors introduced into the regulatory

environment in which the Company

operates, and also in the context of

worsened macroeconomic situation.

It was also possible thanks to strict

cost control.

Yours sincerely

Jarosław Bauc

President of the Management Board,

General Director of Polkomtel S.A.

Letter from the President of the Management Board


T h e l a r g e s t



Jarosław Bauc – President of the

Management Board, General Director;

Krzysztof Kilian – Vice President of

the Management Board, Marketing and

Customer Relations Director;

Wojciech Dylewski – Member of the

Management Board, Operating Director;

Miguel Marin – Member of the

Management Board, Technical Director;

Martin Moorhouse – Member of the

Management Board, Financial Director.

Company Management BoardComposition as of 31 December 2008:

Tomasz Zadroga – Chairman

Marek Trawiński

Tim Harrabin

Ian Gray

Mirosław Krutin

Arkadiusz Gierałt

Dariusz Jacek Krawiec

Sławomir Jędrzejczyk

Supervisory Board Composition as of 31 December 2008:

Company Shareholders Jarosław Bauc

Miguel MarinKrzysztof Kilian Wojciech Dylewski Martin Moorhouse

4.98%Węglokoks S.A.

19.61%Vodafone Americas, Inc.

4.78%Vodafone International

Holdings B.V.24.39% KGHM Polska Miedź S.A.

24.39%Polski Koncern Naftowy Orlen S.A.

21.85% PGE Polska Grupa Energetyczna S.A.


T h e l a r g e s t



For the Polish mobile telephony sector, 2008 was a year of heightened competi-tion in the mobile market

The four Poland’s largest mobile op-

erators service almost 44 millions of

SIM cards. In 2008, market growth

amounted to 6%. The mobile telepho-

ny market has become saturated, with

penetration reaching 115.2%. In terms

of market penetration, Poland ranks

22nd among all 27 Member Countries

of the European Union (according to

report of the European Commission).

For another subsequent year, the mo-

bile telephony is squeezing fixed-line

telephony out of the market. In 2008,

significant growth was noted in the

number of users, the number of calls

and their durations. New operators

appeared in the market, offering new

packages of services.

New operators In 2008, the rates for inter-operator

settlements were reduced among the

three players with significant market

position. A very high asymmetry of

rates was maintained in the market to

the benefit of P4 Sp. z o.o. and Cyfrowy

Polsat S.A. In 2008, the following new

MVNO players entered the market of

mobile telephony:

Mobile Entertainment Company

Sp. z o.o. (Mobilking) – MVNO within

the network of PTC Sp. z o.o.;

CP Telecom Sp. z o.o. (Carrefour

Mova) – MVNO within the network

of Polkomtel S.A.;

MediaTel S.A. (telepin mobi)

– MVNO within the network of PTK

Centertel Sp. z o.o.;

Cyfrowy Polsat S.A. – MVNO with-

in the network of PTC Sp. z o.o.;

Aster Sp. z o.o. – MVNO in cooper-

ation with PTK Centertel Sp. z o.o.;

Crowley Data Poland Sp. z o.o.

(CROWLEY TeleMobile) – MVNO

within the network of PTK Center-

tel Sp. z o.o.;

Netia S.A. – MVNO within the net-

work of P4 Sp. z o.o.

T ender procedure was conducted

and completed for the frequencies in

the 900 MHz range. Due to preferenc-

es granted to small players and to new

market entrants, frequencies were al-

located to Aero2 Sp. z o.o. – a company

established a few months before the

tender – and to P4 Sp. z o.o.

U nder regulatory requirements,

entities which in November 2007

obtained reservation of frequen-

cies in the 1800 MHz range – namely

CenterNet Sp. z o.o. and Mobyland

Sp. z o.o. – were supposed to com-

mence operations by the end of 2008.

None of them succeeded, but in De-

cember 2008 the President of the

Office of Electronic Communications

(UKE) offered both companies the op-

portunity to extend the deadline for

the fulfillment of their obligations,

due to difficult economic situation.

Mobile Television A tender has been opened for fre-

quencies in the range 470–790 MHz,

designated for mobile television. Two

companies participated in the tender:

Mobile TV Sp. z o.o., which is a con-

sortium of four mobile operators, and

INFO-TV-FM Sp. z o.o., a local televi-

sion provider.

Mobile Internet Owing to the ever-wider reach of the

UMTS technology, there has been

a growing interest in the Internet

The Company maintained the position of a leader in the segment of contract customers.

The mobile telephony market in 2008


T h e l a r g e s t n e t w o r k i n P o l a n d

access offered by mobile operators.

In 2008, mobile operators focused

largely on mobile data transmission

– very favorable tariffs were offered,

which significantly lowered costs and

were competitive in relation to fixed

Internet offers. Subscription was of-

fered in package with an appropriate

device. Here, Polkomtel S.A. was the

leader, offering the iPlus subscription

together with a netbook. The number

of customers using mobile Internet

increased significantly.

I n 2008, Polkomtel S.A. became the

leader of the mobile telephony mar-

ket, with its subscriber base of 14.5

million customers. The Company

came ahead of the second largest op-

erator by almost 300 thousand cus-

tomers, and achieved a 33% market

share. The Company maintained the

position of a leader in the segment

of contract customers, whose base

amounted to 6.6 million at the end of

2008 and grew by 13.1%, compared

to the same period of 2007.

In 2008, mobile operators focused largely

on mobile data transmission – very favorable

tariffs were offered which significantly

lowered costs and were competitive in

relation to fixed Internet offers.

In 2008, significant growth was noted in the

number of users, the number of calls and their

duration.


T h e l a r g e s t



14

The introduction of innovative solutions, overcoming of new market barriers and effective communication were the keys to success in 2008 – the achievement of the position of the largest mobile network in the Polish market by Polkomtel S.A.

In 2008, Polkomtel S.A. introduced

a number of innovations into its of-

fer, which largely contributed to the

achievement of market leader posi-

tion. The Company has for years led

the segment of the largest Polish en-

terprises (CMA and SME). In 2008, it

confirmed its domination in the market

of contract offers and mobile Internet.

Polkomtel S.A., owner of the strongest

prepaid brand – Simplus – set out to

grow its share in the pre-paid market,

by introducing the 36.6 brand.

T he innovative pre-paid offer of 36.6

is targeted at the young people. It is

based on a lump-sum SMS payment

which enables freedom of communi-

cation and supplements the previous

pre-paid offer of Plus with an oppor-

tunity to receive top-ups in return for

listening to commercials (the Chill

Bill service). This innovative solution

brought Polkomtel S.A. into the mobile

advertising market, as the first opera-

tor in Poland.

Leader in post-paid and MixPlus

The aggressive action undertaken by

competitors did not threaten the po-

sition of Polkomtel S.A. as the leader

in the individual post-paid and mix

market. This result is supported by

the success of MixPlus, which is

used by almost every second user

of mix offers in Poland. The flex-

ible payment model, combined with

the service portfolio enriched with

a wide range of value added serv-

ices – especially the music-related

ones which are particularly popular

among customers – is the reason why

MixPlus maintains its leading posi-

tion for a subsequent year.

T he consistent extension of the flex-

ible products portfolio was also seen

in the subscription offer, where the

unique “Minute Contract” was intro-

duced in mid-year. This is the first-

ever offer for persons whose calls

exceed the number of minutes under

their subscription which defines not

the contract duration but the number

of minutes they can use. It allows the

customers to replace their phone with

a new one, or to profit from a new pro-

motion earlier than under a standard

contract.

Mobile Internet market In the market of mobile Internet ac-

cess, iPlus maintained the leading

position thanks to both effective

brand image communication and the

attractive product offer.

F rom June 2008 to December 2008,

Polkomtel S.A. has seen the largest

market growth dynamics among all In-

ternet providers in Poland. According

to research conducted by independ-

ent sources (including Audytel S.A. and

Komputer Świat), iPlus offers the fastest

wireless Internet access in the market.

New directions Another innovative solution is the

music store Muzodajnia, launched

in 2008. This is the first music store

in Poland that offers access to legal

music in exchange for a lump-sum

subscription fee. Each of the users

can download the music not only to

his/her computer, but also directly

to the mobile phone. All customers

are welcome to use the Muzodajnia,

In 2008, Polkomtel S.A. confirmed its domination in the market of contract offers and mobile Internet.

Strategy and market position of Polkomtel S.A. in 2008


T h e l a r g e s t



regardless of the network in which

they have their telephones.

A s the pioneer of mobile payments,

Polkomtel S.A. developed this area in

2008, enabling its customers to use

their mobile phones to purchase city

public transport tickets and to pay

for car parking in Warsaw. The Com-

pany plans to continue to extend

the range of services which could be

paid for with the mobile phone.

Positive brand reception

For the Plus brand, the year 2008 was

a very successful one also in terms of

results of marketing communication.

It is confirmed by results of consumer

research conducted in the course of

2008: spontaneous awareness of the

Plus brand, and the intention to pur-

chase are significantly higher than

results obtained by competitors.

Polkomtel S.A. also maintained the

highest level of spontaneous aware-

ness of commercials in the mobile

telephony sector – its result was over

three times better than in the case of

other operators. The brand rejection

ratio is the lowest among all mobile

operators, which certainly is a good

reflection of the positive perception of

the Plus brand.

T he commercials of the Plus brand are

well known to the Polish viewers, and

for years have been produced in the ex-

tremely effective creative format with

the cooperation of the Mumio cabaret

group. Another undisputed success is

the very characteristic format of Simplus

commercials, which alludes to various

movie genders. The consumers received

very well the humor and direct style of

new advertising messages of the 36.6

brand, targeted at the young people. The

commercials promoting the iPlus mobile

Internet access, and the “Plus for compa-

nies” corporate offer are seen as factual,

convincing and encouraging.

T he highest quality, innovation and

effectiveness of the Polkomtel S.A. mar-

keting communication have been appre-

ciated both by consumers (such awards

as Trusted Brand, Superbrands, Premium

Brands, most trusted brand), as well

as by the experts from the advertising

and media sector (e.g. Kreatura, several

awards of the KTR (Club of Advertising

Creators) including the very prestigious

award for advertiser of the year, Impac-

tor – most admired advertiser, and Gold

Effie for long-term activities).

Polkomtel S.A. maintained the highest level of

spontaneous awareness of commercials in the

mobile telephony sector – its result was over three

times better than in the case of other operators.

Operators’ shares – individual post-paid and mix market

Source: UKE’s report – Retail Market of Broadband Internet AccessSource: market situation – IQS AND QUANT, November 2008

Operators’ shares of the mobile Internet market

4%

32%29%

35%

8%

29%27%

36%

Operators’ share of the prepaid market *

Source: data from the operators’ quarterly reports* 4 operators (without MVNOs)

P4 Sp. z o.o.PTK Centertel Sp. z o.o.

PTC Sp. z o.o.Polkomtel S.A.

2007 2008

31% 31%35%

3%

33%29%

33%

6%




PTC Sp. z o.o.Polkomtel S.A. P4 Sp. z o.o.PTK Centertel Sp. z o.o.



T h e l a r g e s t



In 2008, the Company commenced

rendering of services stemming from

regulatory obligations:

providing Polkomtel S.A. subscrib-

ers with access to non-geographi-

cal numbers in the fixed telephony

operators’ networks;

launch of a nation-wide toll free

helpline for children (116 111), in

cooperation with the Nobody’s Chil-

dren Foundation. Polkomtel S.A. is

the first Polish, and fifth European

entrepreneur from the telecommu-

nication sector to offer a European

helpline of social value.

P olkomtel S.A. has also developed

and implemented, by entering into

contracts with mobile networks op-

erators, a cooperation model for ac-

cess from other mobile networks to

telephone numbers starting with

080x, allocated by the President of

the Office of Electronic Communica-

tion (UKE) for the fixed line network

of Polkomtel S.A. This will allow ac-

cess to 080x numbers from the whole

area of Poland. In addition, under the

contracts signed with fixed and mo-

bile networks operators, nationwide

access has been provided to the infor-

mation line 118 118, serviced under

Polkomtel S.A.’s fixed line network.

Domestic cooperation Polkomtel S.A. has agreements on net-

work connections and points of net-

work interconnection with all operators

of mobile networks in Poland, as well

as with the largest operators of fixed

line networks. This not only means ac-

cess to all networks for the customers

of Polkomtel S.A., but also enables co-

operation with other operators in the

area of call transfer. The offer formu-

lated in this area has a positive influ-

ence on the growth of Polkomtel S.A.’s

revenues. It also means that fixed line

operators using our services are not

obliged to establish points of network

interconnection with all operators of

mobile and fixed line networks.

I n the area of cooperation with TP SA,

Polkomtel S.A. managed to reach an

agreement on the interpretation of the

agreement on the connection of the

Polkomtel S.A.’s mobile network with

the network of TP S.A. This agreement

resulted in reduction of costs of termi-

nating in the TP S.A. network the calls

coming from Polkomtel S.A.’s mobile

network. Polkomtel S.A. succeeded

also in obtaining administrative deci-

sions of President of UKE, beneficial to

the Company, changing the following

agreements with TP S.A.:

on the connection of the fixed

network of Polkomtel S.A. with the

network of TP S.A. for voice calls

without the NDS, originating from

the TP S.A. network to the fixed net-

work of Polkomtel S.A., within the

whole territory of Poland;

on the connection of the fixed

network of Polkomtel S.A. with

the network of TP S.A. for the

services of local calls with the

Polkomtel S.A. NDS prefix, within

the whole territory of Poland;

on the connection of the mobile

network of Polkomtel S.A. with the

network of TP S.A. regarding the

introduction of lump-sum settle-

ments for traffic terminating in the

TP S.A. network (the so-called flat

interconnect rate).

T hese decisions are expected to re-

sult in improved traffic exchange be-

tween the TP S.A. and Polkomtel S.A.

networks, and a reduction of costs

tied to the exchange of inter-network

traffic, incurred by Polkomtel S.A.

Service Providers/MVNOIn 2008, Polkomtel S.A. continued

and developed the formula, created

in 2006, for cooperation with enti-

Cooperation among operators

Cooperation among operators in 2008 was characterized by significant dynamics of changes. These changes were caused by the competitive nature of the market, the appear-ance of new entrants, numerous regulatory obligations and by the activity of regulator, whose interventions into the relations among various business entities were becoming in-creasingly broad. Such interventions which were of particular importance for the Com-pany were the decisions regarding the mobile termination rates (MTR).


T h e l a r g e s t



ties which do not own public mobile

telephone networks and commence

their business under the Service

Provider/MVNO model. The active

approach to potential partners plan-

ning such activity allowed the Com-

pany to gain the status of leader in

this market segment, and also to ac-

quire the most attractive partners.

In early 2008, Polkomtel S.A. had

active contracts with emFinanse Sp.

z o.o. (a company of the BRE Group,

operating under the brand mBank

Mobile), GG Network S.A. and Tel-

efonia Dialog S.A.. In the course of

2008, the position of market leader

was strengthened by signing subse-

quent contracts with new partners:

CP Telecom Sp. z o.o. (a subsidiary

of Carrefour and Effortel, operat-

ing under the name Carrefour Mova)

and QXL Poland Sp. z o.o. – the larg-

est auction service in Poland and

Central and Eastern Europe. In April

2008, CP Telecom Sp. z o.o. trading

as Carrefour Mova started commer-

cial operations as another virtual

mobile network operator using the

Polkomtel S.A. network. In 2008, the

Company started negotiations with

new potential partners and the tech-

nical implementation of contracts

signed with GG Network S.A. and Tel-

efonia Dialog S.A.. The said contracts

were developed in the direction of

delivering subsequent services meant

to increase the chances of SP/MVNO

in competing in the market, and simul-

taneously offering the opportunity to

raise Polkomtel S.A. revenues on the

wholesale cooperation with these

partners. This included wholesale

access to SMSC and MMSC, operat-

ing procedures for breakdowns and

outages in the rendering of services.

In 2008, Polkomtel S.A. continued to

perform the contract for wholesale

access to its mobile network under

the national roaming model with the

fourth market operator – P4 Sp. z o.o.

trading as Play. Wholesale sales of

telecommunication services have be-

come a significant source of increas-

ing the Company’s revenues.

R endering services to partners

who cooperate with Polkomtel S.A.

under the SP/MVNO model requires

the design and implementation of

technical and IT solutions that match

their specific needs, and the assur-

ance of appropriate processes with-

in the Company, necessary for the

performance of signed contracts.

This calls both for the develop-

ment of systems that integrate the

Polkomtel S.A. network with service

systems of external suppliers, and

for formal arrangements meant to

assure favorable terms of solutions

provided by these suppliers for the

SP/MVNOs. In 2008, Polkomtel S.A.

continued work on developing the

functionality that would allow to de-

liver a broad range of information on

the use of telecommunication serv-

ices by the end users. Implementa-

tion of this solution would allow the

SP/MVNOs to deliver a broad range

of services that would be competi-

tive with offers of other operators.

Entrepreneurs operating on the basis

of the Polkomtel S.A. network would

be able to offer their customers,

without obstacles and with no fear

of abuse, the packet data transmis-

sion services on both standard and

lump-sum settlement basis, voice

calls and SMS in roaming, and other

Premium Rate services. A function-

ality was also developed that allows

to reduce the costs of SP/MVNOs

tied to the maintenance of SIM cards

designated for replacement and to

service the number portability proc-

ess (MNP), as well as to launch new

functionalities in the future.

Important regulatory decisions

The regulatory environment in which

the Company operates undergoes

continuous changes, which have a di-

rect influence on business situation

and on the conditions for rendering

services to customers. A number of

administrative decisions of the Presi-

dent of the UKE raised serious ob-

jections of operators, both in terms

of assessment of their influence on

competition development in the

Polish telecommunication market,

and in terms of their compliance with

the current Polish and EU legislation.

This statement is illustrated by the

actions undertaken by President of

the UKE in 2008 in the area of de-

termining mobile termination rates

in the mobile Polkomtel S.A. net-

work (the so-called MTR rates); in the

area of determining market position

of new players, such as P4 Sp. z o.o.

and Cyfrowy Polsat S.A. (which has

a direct influence on the situation

of other mobile operators) and the

lineup of regulatory obligations that

is favorable for these entities; as well

as in the area covering allocation of

scarce resources (radio frequencies)

for selected market players.

U nder the actions falling within the

first of the above described areas

– regulation of the MTR rates – the

President of UKE issued on 30th Sep-

tember 2008 the so-called new MTR

decision. This decision changed – to

the disadvantage of Polkomtel S.A.

– the schedule for adapting the MTR

rates, which had been set earlier (in

April 2007) for the years 2007-2010

by means of the so-called old MTR

decision. Changes introduced by the

new MTR decision included not only

the reduction of set rates, but also

their earlier implementation. The

Company decided to employ avail-

able measures to appeal against the

decision of President of UKE, includ-

ing filing a formal complaint to the

European Commission.

I 2008, President of UKE has de-

clared P4 Sp. z o.o. as operator with

significant position in the wholesale

market of voice calls terminating in

the P4 Sp. z o.o. network. The manner

for determining regulatory obliga-

tions under this decision enables the

President of UKE to set MTR rates for

the P4 Sp. z o.o. network on a level sig-

nificantly higher than the MTR rates

that Polkomtel S.A. is authorized to

charge. In addition, on 16th December

2008, President of UKE has issued an

official statement on the subject of

admissible asymmetry of MTR rates,

stating that new entrants in the mobile

telephony market would be authorized

to charge rates that are higher even

by 141% from MTR rates applied by

Polkomtel S.A., PTC Sp. z o.o. and PTK

Wholesale sales of telecommunication services is becoming an important source of increasing

the Company’s revenues.

The regulatory environment in which the Company operates undergoes continuous changes, which have a direct influence on business situation and on the conditions for rendering services to customers.


T h e l a r g e s t



Centertel Sp. z o.o. – which is the level

unheard-of in the whole European Un-

ion. On 5th December 2008, President

of UKE launched the consultation proc-

ess for the draft of decision similar as

in the case of P4 Sp. z o.o., to be issued

for the company Cyfrowy Polsat S.A.

I n the course of actions that fall

under the third of the described ar-

eas – radio frequencies allocation

– in 2008 the President of UKE an-

nounced and conducted a tender

for reservation of frequencies in the

E-GSM range. The tender has been

awarded to Play Sp. z o.o. and Aero2

Sp. z o.o. Tender conditions have

been clearly discriminating against

Polkomtel S.A. and its main com-

petitors, in practice precluding any

chances of the Company to obtain

rights to the discussed resources.

Polkomtel S.A. filed for invalidating

the tender, and challenging the res-

ervation decisions, issued on 9th

December 2008 for P4 Sp. z o.o. and

Aero2 Sp. z o.o.

T he President of UKE launched and

led the proceedings whose goal was

to demonstrate the oligopoly of three

MNO operators in the market of pro-

viding access services and calls origi-

nation in mobile public networks. In

August 2008, the President of UKE fi-

nally declared this market as competi-

tive one, not subject to regulation.

This was the outcome of effective ac-

tions undertaken by Polkomtel S.A.

Changes in the telecommunication law

Under the process of consultations for

the amendment of telecommunication

law, Polkomtel S.A. worked actively to

rationalize certain solutions, in par-

ticular to abandon proposal for provi-

sions that would lead to excessive and

unjustified costs, or that would reduce

the revenues of operators. The draft

of the so-called EU amendment, sent

to the Polish Parliament takes into ac-

count a number of comments raised

by Polkomtel S.A. and by other opera-

tors. This is reflected in the limiting or

abandoning of certain obligations pro-

posed under earlier drafts, that would

have been particularly burdensome

for the operators, such as: limiting the

right of the subscriber to terminate

the contract in the case where the

service regulations are changed due

to the need to adapt them to the cur-

rent provisions of the law; abandoning

the need to guarantee the subscriber

the possibility to limit the monthly in-

voice amount; abandoning the imme-

diate enforcement of penalties levied

on entrepreneurs by President of UKE

(through payments into an escrow ac-

count).

H owever, it should be stressed that

the amended telecommunication law

would lead to a new quality in the

conditions under which the telecom-

munication companies operate, main-

ly as it significantly strengthens the

position of President of UKE. Polkom-

tel S.A. has also actively participated

in the consultations for a number of

other legislation pertaining to the tel-

ecommunications market, presenting

– via the Polish Chamber of Informa-

tion Technology and Telecommuni-

cations and the Polish Confederation

of Private Employers Lewiatan – its

opinions and proposals meant to im-

prove the conditions under which the

Company operates.

I n 2008, Polkomtel S.A. com-

menced the implementation of

a number of regulatory obligations,

consisting in the launch of services

or other solutions defined under

the telecommunication law. The

possibility to localize calls made

to emergency numbers was of par-

ticular importance (in cooperation

with the Ministry of Interior and

Administration, location of these

calls was made possible on the ba-

sis of the Polkomtel S.A. solution

– that is, with the use of the website

http://www.112.pl

Number portability In 2008 the customers’ interest in

the number portability service clear-

ly grew, although this growth was

less dynamic than during the previ-

ous years. In comparison to 2007,

the amount of numbers transferred

among Polish mobile telephony op-

erators rose by over 30% (from al-

most 115 thousands in 2007 to over

150 thousands in 2008).

T he Company entered into six new

agreements on the numbers portabil-

ity service (with the following com-

panies: Aster Sp. z o.o., CP Telecom

Sp. z o.o., Cyfrowy Polsat S.A., Mobile

Entertainment Company Sp. z o.o.,

Netia S.A. and Telogic Poland Sp. z o.o.).

The total number of such agreements

amounts to 11.

International cooperation

In the area of roaming and internation-

al wholesale services, Polkomtel S.A.

maintained in 2008 the leading posi-

tion among all Polish mobile opera-

tors in terms of international roaming

– offering its services to subscrib-

Polkomtel S.A. has also actively participated in the consultations for a number of legislation pertaining

to the telecommunications market, presenting its opinions and proposals meant to improve the

conditions under which the Company operates.

ers and users across 197 countries.

Polkomtel S.A. maintained also

its leadership in the packet data

transmission service, available in

124 countries. In 2008, Polkomtel S.A.

successfully negotiated preferential

wholesale financial terms for inter-

national roaming in foreign networks,

which enabled the Company to design

very competitive offers for its custom-

ers. In addition, thanks to its very ac-

tive attempts, Polkomtel S.A. acquired

roaming traffic from other interna-

tional networks outside the Vodafone

group, by directing other networks’

users to the Polkomtel S.A. network.

The outcome of these intense mar-

ket activities was the acquisition of

additional international transit traf-

fic from the wholesale market, with

the use of vacant frequencies at the

network interconnection points. This

allowed to increase revenues and to

obtain additional margin without the

involvement of additional resources

by Polkomtel S.A.

In the area of roaming and international wholesale services, in 2008 Polkomtel S.A. maintained the leading position among all Polish mobile operators in terms of international roaming.


T h e l a r g e s t



It would not have been possible to achieve the leading position among all companies operating in the Polish mobile telephony market without competent and friendly customer service. The highest quality of services to our customers is the goal that we have set for ourselves years ago in order to meet, and even exceed, their ex-pectations.

It is the reason why we constantly

improve our processes, research

and analyze the rapidly changing

telecommunication market, and

most importantly, listen to the

comments and suggestions of our

customers, considering these as

a gift from them. All these actions

increase the satisfaction of cus-

tomers with services offered by

our network, and build durable re-

lations between the customer and

our Company.

I n 2008, our Customer Service

Center implemented a new service

philosophy, to meet the wishes and

expectations of our customers. The

fully automated outgoing phone-

based campaigns, during which

our consultants present dedicated

packages, developed especially

for specific customers, have intro-

duced a new quality in customer

service.

New initiatives In 2008, a new strategic project

called Self Care was initiated and

launched. Its main goals, for the

nearest future, are to further im-

prove customers’ satisfaction with

the self-service channels (www, IVR,

SMS, USSD), to accelerate implemen-

tation of new products and services

in these channels, and to increase

the share of self-service.

I n mid-2008, a new, fully redesigned

version of the Polkomtel S.A. e-store,

based on state-of-the-art IT solutions

provided by IBM, was implemented.

The new e-store has advanced pres-

entation capabilities for the offered

handsets, and a user-friendly pur-

chase mechanism for products and

services. The new design, adapted to

needs of customers, further empha-

sizes its modern nature. Launch of

the modern version of e-store led to

a dynamic growth in the sales of new

activations and products in the rap-

idly growing Polish e-commerce mar-

ket, and contributed to strengthen

the in-house distribution network of

Polkomtel S.A.

T he new system for identification

of fraud, implemented in December

2008, enables the ongoing moni-

toring of traffic – post-paid and

pre-paid alike – including roaming

traffic. It defines effective rules that

identify potential fraud and allow

to block services in case where the

fraud is probable. Those action limit

the losses of operator, arising with

relation to use of services contrary

to the contract. They also guarantee

safety for customers, and full access

to information about the amount of

their future bill.

I n order to protect safety of custom-

ers, real-time monitoring of roaming

calls made by Polkomtel S.A. cus-

tomers was launched (the so-called

NRTRDE).

Customers about the Company

In July 2008, our Company commis-

sioned a qualitative research of sat-

isfaction of customers serviced under

the usage monitoring process. Result

In mid-2008, a new, fully redesigned version of the Polkomtel S.A. e-store, based on state-of-the-art IT solutions provided by IBM, was implemented.

Customer service

T h e l a r g e s t



of the research has demonstrated

a very high level of respondents’ sat-

isfactions with the preventive actions,

and with service by employees par-

ticipating in this process. Among oth-

ers, the most appreciated one – as an

expression of care for customer – was

the information on current usage lev-

el (both in the form of SMS and direct

contact with the consultant). Contact

with employees has received positive

opinions from most of respondents

and was described as courteous, com-

petent and exhaustive.

2 008 was full of various actions

promoting alternative payment

forms – primarily direct debit. The

customers were sent over 2 million

of leaflets promoting direct debit as

the most convenient and the safest

method for paying for telecommuni-

cation services in the Polkomtel S.A.

network. The number of services

settled with a direct debit reached

in 2008 the level of about 400 thou-

sands, which corresponds to a growth

by 18%, in comparison to 2007. The

share of direct debit in the total

number of payments was slightly

higher than 11%.

T he audit conducted in 2008, which

covered customer service and per-

sonnel management in accordance

with ISO 9001-2000 requirements,

proved that the friendly and com-

petent service, as well as new ini-

tiatives in the customer service area

constantly increase satisfaction of

our customers. It was confirmed that

the Customer Service Center fully

adheres to the standards, and the

management system is effectively

maintained.

Social initiatives Polkomtel S.A. actively participated

in the project meant to increase the

professional activity of disabled

persons. Under this project, the first

disabled persons were hired on 1st

October 2008 as consultants in the

Telephone Customer Service Center

located in Łódź .

D uring third quarter of 2008,

Polkomtel S.A. took part in the pro-

gram “The Young Ones in Łódź”, or-

ganized in cooperation with the Łódź

City Hall. The program’s purpose is

to increase professional activity of

The cyclical audit conducted in 2008,

which covered customer service and

personnel management in accordance

with ISO 9001-2000 requirements,

proved that the friendly and competent

service, as well as new initiatives in the

customer service area constantly increase

satisfaction of Polkomtel S.A. customers.

students, by enabling them partici-

pation in practical training and in-

ternships and to popularize this form

of acquiring valuable employees

among the employers. In the course

of the internship, the students could

learn about the specific features and

environment of work in the customer

service area. This initiative supported

the process of search for candidates

to work at the telephone Customer

Service Centers.

O ur Company, as the only one

among all telecommunication opera-

tors in the Polish market, supported

for another time the Great Orchestra

of Christmas Charity. Consultants of

the Polkomtel S.A. Customer Service

Center have supported the Orchestra

in 2008, working as volunteers on

the Orchestra’s hotlines.


T h e l a r g e s t



In 2008 Polkomtel S.A., responding to the customers’ needs, developed the informa-tion services which offer each customer access to information, sports or business news via the mobile portal. The customers can also use location services, and serv-ices tied to delivery of music as well as video content, among other things.

The Company is the pioneer of mo-

bile payments, provided under the

brand name “Pay with your mobile”

(“Płać komórką”). Currently custom-

ers can use this method to pay for

city public transport tickets or car

parking time in Warsaw. The Compa-

ny plans to extend the range of serv-

ices which could be paid for with the

mobile phone.

T he Company is consistently broad-

ening its portfolio of flexible prod-

ucts. One of such innovations is the

“Minute Contract”, described earlier.

A nother innovative solution is the

musical store Muzodajnia, launched

in 2008. This is the first music store

in Poland that offers access to legal

music in exchange for a lump-sum

subscription fee. Each of the users

can download the music not only to

his/her computer, but also directly to

the mobile phone. This manner of ac-

cess to music practically eliminates

the price barrier to purchasing legal

music. Muzodajnia is open to all cus-

tomers, regardless of the network in

which they have their telephones.

T he offer at the wap.plus.pl was de-

veloped effectively. This portal was

given new image and functionalities,

which brought the Plus Product World

closer to the customers. As a result,

the number of users of wap.plus.pl

grew, and so did the revenues. In the

future, wap.plus.pl is to become the

main channel for contact between

the customers and the operator.

Novelty entertainment and information services

Czasoumilacz – the Time Charmer

– Przygotowywarka (Preparer) and

Mixer. New functionalities intend-

ed for the mass and business cus-

tomer market which allow to:

• prepare one’s own recording from

an existing music file;

• making an own recording using a

microphone and computer (so far

it was possible only via IVR);

• adding musical background (ready

or custom-made) to one’s recording.

Flirtoteka – Flirting Board – a voice-

based dating service which allows

to establish new contacts.

Voice Mail via MMS – a mail profile

which sends each received mes-

sage to the mailbox user in the

form of a MMS with the original

voice message sent as attachment.

Kontaktoutrwalacz – Contact

Preserver – a service that ena-

bles the users to copy, store and

record all contacts from their tel-

ephones, at any given time and

any given number of times, to any

number of telephones which op-

erate under the standard Sync ML

protocol.

MultiInfo – an Internet platform

for the exchange of SMS , providing

mass and bilateral communication

among single and group mobile

network users via an online inter-

Muzodajnia (muzodajnia.pl) is the first music store in Poland that offers access to legal music in exchange for a lump-sum subscription fee. Each of the users can download the music not only to his/her computer, but also directly to the mobile phone.

New products and product innovation


T h e l a r g e s t



face. The platform’s development

was continued in 2008. New mod-

ules were introduced – SMSschool,

Reception, as well as a number

of additional new functionalities

which increase the platform’s flex-

ibility.

Automotive service – a video

streaming service on the latest

news from the world of vehicles,

tests of cars, reports from car fairs

and car shows.

Video streaming package based

on the offer of MTV – the most

popular shows of this TV channel,

such as „Pimp my room”.

Sportownia – „Sports house”

– a new section of the wap.plus.pl

portal, which replaced the former

sports news. This section includes

several information categories,

as well as entertainment services

and sports content. The important

sports events of 2008 had special

dedicated sections under Spor-

townia.

Occasional centers on the

wap.plus.pl portal – throughout

the year, several dedicated WAP

services were launched, with

services and content tied to holi-

days, movie premieres and other

important cultural events.

Chill Bill – in June 2008, users

of the 36.6 brand were offered

the Chill Bill service. This is the

first solution in Poland that

gives free top-ups to be used

for calls and SMS in return for

listening to commercials. Use of

this service is very simple – all

the user needs to do is to reg-

ister at the website http://www.

plus. pl/oferta_indywidualna/

mix/ chillbill/, and next call the

toll-free number 6666 to listen

to a set of three commercials.

After each of the commercials,

the user receives a simple ques-

tion on its content – three cor-

rect answers are rewarded with

1.00 PLN for calls, SMS and

MMS. The maximum monthly

top-up that can be obtained in

this way is set at 10.00 PLN, and

this amount can be used for 30

days. From the launch of this se-

rvice till the end of 2008, over

210 thousand persons registe-

red and used it. Advantages of this

new communication channel are

appreciated by a growing number

of advertisers. Over a hundred of

campaigns were conducted. This

channel has been used by such

well-known brands as: Tiger, Red

Bull, Lotto, Cubus, Speak Up or

Cinema City. The feature that

makes Chill Bill stand out the

most among other channels is

the extremely high response rate

– even after a one-time listening

to the commercial – and full me-

asurability of the campaign (all

contacts with the commercials

are recorded).

Dedicated data transmission services

The following were introduced:

new dedicated applications (iPlus

Manager 2.0, ZeroCD) that facili-

tate the use of data transmission

services;

new offers for packet data trans-

mission under roaming;

videostreaming – a new platform

aimed at increasing effectiveness,

phones, containing data on com-

panies and their services from all

over Poland.

Tariff products Aside from the described earlier 36.6

and the Minute Contract, the tariff

products launched in 2008 included:

Taryfy Syberyjskie – Siberian

Tariffs – new tariffs for the mass

market, characterized by a large

amount of call minutes, and pack-

ages of minutes to be used for

calls to all networks; plus the

Złocimierz – Zloty Meter – serv-

ice, under which the customer re-

ceives automatic notifications on

exceeding his/her selected per-

manent bill amount, and subse-

quently on multiple excess of the

bill amount;

Ważny Telefon – Important Tel-

ephone – promotional tariffs for

persons who make a lot of calls

and spend over 100.00 PLN per

month on their phone bills. The

tariffs include extra packages of

minutes, discount for the iPlus

service via the mobile phone, a

gold number under 250 and 350

tariff plans, toll-free GPRS con-

nection with wap.plusgsm.pl and

a MMS profile for voice mail;

Na Rozmowy – For Calls – a pro-

motional tariff dedicated for

the SOHO market, under which

call minutes are included in the

subscription fee, replacing the

packages based on monthly bill

amount, which were used so far

for all corporate customers;

Eurotaryfa – Euro Tariff – reduc-

tion of the Euro Tariff prices for

voice calls originated and re-

ceived under roaming. Prices are

independent of roaming partners’

tariffs, identical for all countries

of the European Union;

New rates for voice calls and SMS

under roaming, intended for special

offers for Corporate Customers.

and the opportunity to broadcast

more TV channels on-line;

new BlackBerry offers, including

up-to-date, improved software

and reduced prices of services.

Convergent services the „Prefix 1069” service – intro-

duction of local calls for subscrib-

ers of the service located all over

Poland, with the exception of tran-

sit zone in Lublin;

commercial launch of points of

interconnection LPSS all over Po-

land, with the exception of tran-

sit zones located in Lublin and

Szczecin;

new types of calls were intro-

duced to the following number

types: Premium Rate, Split Charge,

AUS, Paging Networks for UK cus-

tomers; as well as the opportunity

to use SS7 signaling on the sub-

scriber line;

118 118 – hotline for Eniro –

launch of a fee-for-service infor-

mation hotline for users of mobile


T h e l a r g e s t



Polkomtel S.A. is a company that values innovation. 2008 saw the introduction of one of the first solutions. From the planned series of technologically innovative IT implementations Polkomtel S.A. launched a new billing system for its pre-paid customers.

The modernization program for

the architecture of new solutions

in the area of new products and

services development, initiated

at the end of 2006, allowed the

Company to launch a new billing

system for customers of pre-paid

services. As the result of imple-

mentation of one of the world’s

latest solution of that type,

Polkomtel S.A. was able to offer

a number of innovative services,

extremely favorable for the cus-

tomers. A good example are two

of these services: the first one that

allows to use the mobile phone

even when the customer account

is exhausted, and the second one

that offers cheaper calls within

community groups.

In 2008, the Company introduced

also projects targeted at further

modernization of the IT infra-

structure, focused on billing sys-

tems for contract customers and

the CRM systems that support

sales and customer service. The

purpose of the actions undertak-

en by the Company in this area is

to build in the future a compre-

hensive and innovative solution

that would enable the offering

of new products, such as conver-

gent services, subscription serv-

ices and pre-paid services.

Investment into modern infor-

mation technologies is justified

primarily by the economic calcula-

tion. Implementation of solutions

based on SOA (Service Oriented

Architecture), as continuation of

the modernization processes of

IT infrastructure, will facilitate

the integration of new solutions

with existing ones. This will al-

low Polkomtel S.A. to optimize the

time and costs of new products

implementation. The launch of the

Muzodajnia service in the second

half of 2008 confirmed this ap-

proach is right.

The standardization of IT proc-

esses, currently implemented, and

their linking to business services,

would have a significant influence

on future effectiveness growth.

This shall be followed by organi-

zational and structural changes

that would provide the desirable

knowledge, necessary competen-

cies and specialist skills, allow-

ing the Company to cope with the

challenges it faces.

F ocus on innovation is a well

thought-out strategy, which gives

the Company ample room to design

its own new products. The initiated

changes would assure the Company

the opportunity to continuously en-

rich the range of offered products

and services, and increase their com-

petitiveness in terms of quality.

T he solutions to be introduced

into the IT infrastructure are the key

challenges for the coming years. As

a result, by optimizing costs while

maintaining the necessary software

quality, we shall be able to cope with

the increasing pressure and demands

from the dynamically changing mar-

ket environment.

Implementation of architecture based on SOA will facilitate the integration of new solutions with existing ones. This will allow Polkomtel S.A. to optimize the time and cost of new products implementation.

Technological innovations



In 2008, the sales network structure

comprised:

Channels responsible for the ac-

quisition and complex servicing of

individual customers and small busi-

nesses, represented by:

26 Company stores;

955 agency-based POS, including

133 company POS, 643 specialist

POS and 179 non-specialist sales

outlets. This network was serviced

by 10 network partners and 10 indi-

vidual partners;

441 points of sales (developed

by 10 commercial partners), dedi-

cated to the sales of mobile data

transmission solutions;

55 distributors of the pre-paid

products, including 26 distribu-

tors of electronic top-ups; 40

thousand points of sale of start-

er packages and about 100,000

outlets where electronic top-ups

are sold;

12 Telesales partners;

Internet store.

The priority sales activities of Polkomtel S.A. in 2008 focused on the enlargement of packages of additional services matching the needs of individual customers, and on development of tailor-made solutions for business customers

T he channel responsible for the ac-

quisition of and comprehensive serv-

ices to medium and large businesses,

represented by the own sales chan-

nel of Polkomtel S.A., responsible

for the cooperation with the largest

customers of Polkomtel S.A., and ex-

ternal sales channels, i.e.:

548 agency commercial advisers

of Polkomtel S.A.,

38 telemarketing partners.

26 Company stores

955 agency POS

441 sales outlets

55 distributors of pre-paid products

12 Telesales partners

Internet store

548 agency commercial advisers

38 telemarketing partners

Sales


T h e l a r g e s t



In 2008, Polkomtel S.A. continued its invest-ment into the telecommunication network, developing the UMTS network, increasing data transmission capacity and network capacity for the services offered.

Investments into the telecommu-

nication network were induced by

the increase in traffic generated

by new customers, rising interest

in services among the existing cus-

tomers, as well as by investments

into new technologies aimed at in-

creasing the comfort of using the

fastest Internet access available in

the mobile network. The Company

increased also the capacity of nu-

merous platforms delivering value

added services, such as MMS, SMS,

voice mail, video streaming, Czasou-

milacz, Kto Dzwonił – identification

of callers, and location services. In

2008, Polkomtel S.A. launched also

the IMS technical infrastructure,

which is the technological root from

which new generations of network

architecture will grow. Thanks to

this solution, we can already of-

fer advanced, highly personalized

services to our key customers, re-

gardless of whether their network

access solution is the classical GSM

or VoIP.

Primary investmentsThe main group of the Company’s

expenditure are investments into

the telecommunication network.

In 2008, Polkomtel S.A. investment

outlays exceeded the level of PLN

1.1 billion for the second subse-

quent time. This was attributed pri-

marily to the rapid growth of UMTS

network coverage, network modern-

ization to extend the reach of EDGE

technology outside the UMTS cover-

age, and evolution of the high speed

data transmission technology in the

UMTS network (HSPA). Within the 10

largest Polish cities and metropoli-

tan areas, and in zones of increased

traffic, the HSPA technology al-

lows to use data transmission and

Internet access at the speed of up

to 7.2Mb/s towards the subscriber

terminal and 1.4 Mb/s from the ter-

minal towards the network. Within

the remaining coverage area of the

UMTS network, the speed of data

transmission under the HSPA tech-

nology is up to 3.6 Mb/s towards the

subscriber terminal and 384 kb/s

from the terminal towards the net-

work. At the end of 2008, the UMTS

technology in Polkomtel S.A. net-

work was available in almost 1500

cities and municipalities, inhabited

by over 50% of the population.

A new solution was implement-

ed in Wrocław, offering high data

transmission capacity in the trans-

port network, at 30 Mb/s per NodeB,

based on the IP technology. This is

one of the first projects of this type

in Europe. It allows to meet the ex-

pectations of customers who use

the currently available technolo-

gies, and enables the implementa-

tion of HSPA+.

D evelopment of the UMTS network

was complemented by network de-

velopment on the basis of EDGE

technology. This technology has

been developed simultaneously in

urban areas and in locations where

there is large interest in data trans-

mission in the GSM network (it ap-

plies especially to users who do not

yet have UMTS terminals). The EDGE

technology is currently available for

83% of Poland’s population. The

area in which it is available gener-

ates over 95% of data transmission

traffic.

The 2G and 3G technologies

Growth in network capacity for

voice services reached 17% per

year, which matched the increase

in voice traffic in the 2G network

Infrastructure and network development


T h e l a r g e s t



by 22% compared to the previous

year. In the last week of 2008, the

network was capable of transferring

almost 200,000 erlangs during rush

hours. During 2008, the number of

GSM base stations rose by 5%, and

the number of UMTS base stations

by 74%. In 2008, the development

of the voice core network was based

primarily on the 3GPP Release

4 architecture, using IP technology

for transport. The share of traffic

served by this infrastructure ex-

ceeded 23% in 2008 and shall con-

tinue to increase significantly in the

coming years. It is also worth noting

that traffic migration from 2G to 3G

network increased significantly in

2008. At the end of the year, voice

services under 3G network amount-

ed to 8.5% of all voice calls in the

whole network, and almost 14% in

the nine largest cities and metro-

politan areas.

Service platforms In order to serve the constantly

growing number of subscribers

and the increasing network traffic,

Polkomtel S.A. has also increased

the capacity of many platforms for

value added services. At present,

the Polkomtel S.A. network is capa-

ble of servicing 100 MMS messages

per second, and 8500 SMS messag-

es per second. The MMSC platform

was also upgraded – its architecture

was modified and adapted to ensure

the failure-free service of traffic with

changed profile, especially at inter-

faces to other mobile networks. The

investments into development and

modernization of the voice mail sys-

tem allowed to increase its capacity.

This was possible in part thanks to the

initiation of a new node. The capac-

ity of the voice mail system amounts

currently to 10,320,000 boxes, and

most of the voice mail nodes in the

network are already adapted to serv-

ice multimedia messages.

I n order to assure capacity need-

ed to service the current number

of pre-paid customers using the

CAMEL technology, in 2008 the

Company undertook actions meant

to enlarge the capacity of the OCP

nodes which are part of the SICAP

pre-paid platform. After completion

of this enlargement, the total capac-

ity of the OCP nodes at the end of

2008 amounted to 5.39 millions of

call set-up attempts per hour.

I n view of the planned mass mi-

gration of pre-paid users from the

SICAP system, in 2008 the Company

undertook actions meant to increase

the capacity of the Alcatel-Lucent’s

Intelligent Network platform, which

constitutes an integral element of

the target pre-paid solution in the

form of Convergent Billing. Thus,

the Alcatel-Lucent’s Intelligent Net-

work at the end of 2008 was ready

to service 9 millions of active pre-

paid users. A number of other serv-

ice platforms were also modernized

in 2008.

Reliable infrastructure Due to the 35-percent growth of

signaling traffic in the network, the

existing STP nodes were expanded

to the maximum possible capac-

ity. The network was enlarged by

adding two new nodes, already

equipped with processors dedicat-

ed to service the signaling traffic

on the basis of IP technology under

the Sigtran protocol. This is tied to

the development of network tech-

nology towards IP-based common

packet transport.

Network development In terms of Inter-network traffic

exchange, at the end of 2008 the

Company had 19 points of inter-

connection with international op-

erators (POI), and three subsequent

ones were being tested. The range

of available points of interconnec-

tion with domestic operators was

also extended to include another

34, and their total number amount-

ed to 198 at the end of 2008. The

network developed visibly towards

packet transport technology and

packet data transmission, which

was determined by the demand of

mobile users to access fast data

transmission technologies, and by

the significant scale of voice traf-

fic migration to the 3GPP Release

4 architecture. Users of data trans-

mission services have sent 330

terabytes (TB) of data in December

2008, and the upstream of Internet

traffic reached 2.2 Gbit/s during

the rush hours. In absolute values,

this means a growth of the monthly

volume by as much as 206 TB. The

growth rate was over twice as high

as during the previous year. In or-

der to service the future traffic with

such growth rate, and due to voice

traffic serviced on the basis of Re-

lease 4 of the 3GPP architecture,

which requires an effective pack-

age transport network, aside from

development of infrastructure to

service packet transmission of the

users’ data, the Company made fur-

ther investments. After selection of

the winning tender already in 2007,

a completely new packet transport

network was built, based on the IP/

MPLS technology. This network took

over the whole traffic and replaced

the previous IP backbone network.

This network serves also as the ba-

sis for continuing migration of the

SS7 signaling network based on the

TDM technology to signaling net-

work based on the Sigtran protocol

and IP transport.

R ollout 2008 was once again im-

plemented under the process of

turnkey construction of base sta-

tions, with the participation of

external partners. In 2008, the

Company implemented solutions

meant to improve process capac-

ity – of both Polkomtel S.A. and its

principal partners, namely Erics-

son and Nokia Siemens Networks.

In terms of network development

in 2008, the goals regarding the

number of integrated new 2G and

3G base stations, and moderniza-

tion of 2G networks in terms of the

EDGE technology (by replacement

of equipment in over 800 stations)

were achieved in practically 100%.

The 2008 rollout was the largest

ever in the Company’s history.

In 2008, Polkomtel S.A. launched the IMS technical infrastructure, which is the technological root from which new generations of network architecture will grow.


T h e l a r g e s t



The level of employment at Polkomtel S.A. as of 31 December 2008 amounted to 3,602 permanent employees (calculated as full-time equivalents) and the average of 157 temporary employees in the year, which makes 3,759 employees in total. Training

In 2008, the employees of

Polkomtel S.A. participated in a to-

tal of 14,461 days of training. There

was four days of training per one

employee. The number of English

language courses amounted to two

hours per employee.

Employment structure by sex and age

The age of average employee of the

Company was 32.27 as of 31 Decem-

ber 2008. For women, the average age

was 31.1, for men 33.4.

Full-time and temporary employees

Employment levelEmployees

Average age of employees in the years 2006–2008

2007 2008

32.2732.38

31.93

2006

2004 2008200720062005

3387

3053

3396

3355

3602

516

826

513

400

157

– Average number of temporary employees in a year – Number of full-time equivalents


T h e l a r g e s t



42

W omen constituted 48.41% (1,889)

of all employees. The proportion of

women employees at the Company

rose compared to the previous year

– in 2007, Polkomtel S.A. employed

1704 women (47.43% of all employ-

ees). The share of men dropped from

52.57% (1,889) in 2007 to 51.59%

(2,013) in 2008.

by education and positions held

The largest group among all employees

of Polkomtel S.A. are those with em-

ployment length shorter than one year

(19.04%). 19.17% of all employees

have been employed at the Company

for one or two years, which means that

38.21% of all employees have em-

ployment length under two years. The

smallest group of employees is those

with employment duration from three

to five years (only 15.09%).

T he average employment duration

at Polkomtel S.A. amounts to five

years, which is similar to the data

for 2007.

Level of education 46.77% of the Company employees

have higher education (1,837 per-

sons) and 48% - secondary and post-

secondary education (1,873 persons).

Employment effectiveness measures

Polkomtel S.A. conducts annual

surveys on the effectiveness of em-

ployees, assessed on the basis of

established measures. The results of

those surveys are illustrated by the

following diagrams.

Measure 1. Total number of customers per one employee

(FTE)

The ratio of the total number of customers to the number

of employees (full time and temporary) in Polkomtel S.A.

amounted to 3855 at the end of 2008, which constitutes an

increase of 7.71% in relation to the 2007 ratio.

Measure 2. Revenues per one employee (FTE) in PLN ‘000

The value of revenues per one employee (including tempo-

rary employees) in 2008 amounted to PLN 2,259,000.00,

which constitutes an increase of 8.87% in comparison to

the 2007 result.

Measure 3. EBIDTA per one employee in PLN ‘000 Measure 4. HR ROI – return on investment in human resources

The value of EBIDTA per one employee (including temporary

employees) in 2008 amounted to PLN 825,000.00, which con-

stitutes an increase of 9.85% in comparison to the 2007 result.

Gross profit (PLN) from each 1 PLN invested in employees. In

comparison to 2007, a decrease by 1.73% was recorded.

2007200620052004 2008

3855

1811

35793072

2318

2007200620052004 2008

22592075

18831664

1455

2007200620052004 2008 2007200620052004 2008

8.658.49 8.508.427.23

510634

751

589

825

Job seniority in proportion to all employees

38.21% 0–2 years

15.09% 3–5 years

19.32% 6–8 years

27.37% 9–12 years


T h e l a r g e s t



The increase in the number of cus-tomers by 7.6% in the difficult and demanding 2008 is a proof of splendid condition of Polkomtel S.A., which became the largest player in the mobile telephony market. This dynamic development al-lowed the Company to achieve net profit in the amount of PLN 1,359,094,009.29.

Customer base The total base of customers of

Polkomtel S.A. mobile services at the

end of 2008 amounted to 14,473.7

thousand. This constitutes an increase

by 7.6% in relation to the level as at

the end of 2007. The contract custom-

er base (subscribers and MixPlus users

with a contract) increased to 6,564.5

thousand, and the base of users with-

out a contract to 7,909.3 thousand.

This constitutes an increase by 13.1%

and 3.4%, respectively. In 2008, like in

the previous years, most – that is, 77%

– of newly acquired customers were

users of services without a contract.

However, due to the growing churn

rate in that group, it was the contract

customers who accounted for the ma-

jority of net increase (newly acquired

minus churn) in 2008.

Churn rate The churn rate in the Polkomtel S.A. net-

work rose in 2008 to the level of 43.9%,

in comparison to the rate from the pre-

vious year, which amounted to 36.4%.

This was due to the higher outflow of

customers from the base without con-

tract. The significant competition in

the market of prepaid offers, combined

with the low purchase cost of the starter

package, makes the customers migrate

between offers of different operators

more frequently. Additionally, the in-

crease in churn rate among customers

without contracts was influenced by

the offers of migration to postpaid and

MixPlus.

Average Revenue Per User

The average revenue per user (ARPU)

in 2008 amounted to PLN 47 per

month. This is PLN 0.8 more in com-

parison to PLN 46.2 in 2007. The in-

crease of ARPU refers to customers

without contracts (in the segment of

customers with contract, a decrease

of ARPU was noted).

G rowth of ARPU in the segment of

customers without contract in 2008,

to the level of PLN 18.3 (in 2007, the

level reached PLN 17.5) results from

the higher activity of these customers,

which translates into higher average us-

age of voice services (by 17%). This is

caused by the high price effectiveness,

observed in this group of customers.

I n 2008, ARPU for contract custom-

ers amounted to PLN 79.3, which repre-

sents a decrease by 6.7% in comparison

to the previous year. The decrease of

ARPU is the effect of introduction of

new tariffs and promotions, offering in-

creasingly favorable prices of telecom-

munication services. Another factor

that contributed to the decline in ARPU

is the growing penetration of mobile

telephony services, and an increased

interest in contract services among

customers who previously used offers

without a contract.

Financing of operations

In 2008, Polkomtel S.A. financed its

operations both with own funds and

with external funds, in the form of

bank loans and – to a small extent – in

the form of a bonds issue program. The

Company paid the remaining dividend

for 2007 (remaining after the advance

paid to Shareholders in December

2007), in two installments totaling PLN

932.5 million.

T he total debt under bank loans

amounted to PLN 1,573.3 million at the

end of 2008. At the end of 2008, the

Debt/EBIDTA ratio amounted to 0.45,

which represents a slight decrease in

comparison to its 2007 level, when it

amounted to 0.57.

Operating results and financial statements


T h e l a r g e s t



I n order to finance its operations, in

2008 Polkomtel S.A. used a revolv-

ing loan, based on the agreement of

6 July 2006, concluded with the group

of the following banks: Bank BPH S.A.,

Bank Handlowy w Warszawie S.A., Bank

Pekao S.A., BNP Paribas/BNP Paribas S.A.

Branch in Poland, ING Bank Śląski S.A./

ING Bank N.V., J.P. Morgan PLC/J.P. Mor-

gan Europe Limited, Powszechna Kasa

Oszczędności Bank Polski S.A., Societe

Generale S.A. Branch in Poland and

Nordea Bank Polska S.A., which joined

the group of financing banks in 2007.

This loan, granted in the amount of PLN

1,600 million, is designated for the gen-

eral needs of the Company. The total

repayment of the loan is planned at five

years after the date of signing the loan

agreement, that is, in July 2011. At the

end of 2008, Polkomtel S.A. had unused

limit under the revolving loan, amount-

ing to PLN 200 million.

P olkomtel S.A. used also an over-

draft and a bonds issue program in

2008. The debt in short-term over-

draft lines amounted to PLN 165.7

million at the end of 2008. In order

to flexibly manage its liquidity gaps,

Polkomtel S.A. used a five-year

bonds issue program, with the maxi-

mum debt amount set at PLN 1,000

million, organized in 2005. As the

conditions in the commercial papers

market worsened significantly, this

program was used only in the first

half of 2008. Therefore, no debt

under the bonds was recorded as of

31 December 2008.

Result on financial activities

In 2008, the balance on financial op-

erations was negative and amount-

ed to PLN 210.9 million. A significant

component of these costs, in the

amount of PLN 42.7 million, was

the interest presented as discount

related to the valuation of the

UMTS license. The financial activi-

ties involved interest expenses and

commissions on contracted loans,

in the amount of PLN 90.2 million.

In comparison to the previous year

(PLN 66.9 million), it results from an

increase in the average level of debt.

The rapid weakening of the Polish

currency influenced the results in

the form of negative foreign ex-

change differences in the amount of

PLN 161.9 million. The positive result

on hedging operations, including re-

alized and unrealized results on de-

rivatives, together with interest paid

and received on these instruments,

amounted to PLN 95.7 million. It

significantly improved the financial

result, weakened by the negative

influence of foreign exchange rates.

To compare, in 2007 these amounts

were, respectively: PLN 42.1 million

of gains on foreign exchange differ-

ences, and PLN 2.9 million of loss on

derivative instruments. The finan-

cial risk is subject to hedging princi-

ples, established by the Supervisory

Board in 2002 and set forth in the

document “Financial Risk Manage-

ment Policy”. The activities in that

area are regulated by detailed pro-

cedures, which allow for effective

measurement of and hedging against

market risks.

The total base of customers of Polkomtel S.A. mobile services at the end of 2008 amounted to 14,473.7

thousand. This constitutes an increase by 7.6% in relation to the level as at the end of 2007.

Profit and loss account

Net sales and sales equivalents 8 482 085 193.95

Profit on sales 1 858 447 198.99

Profit on operations 1 886 446 944.44

Gross profit 1 675 585 677.78

Net profit 1 359 094 009.29

Balance sheet

Non-current assets 7 350 346 412.08

Current assets 1 566 357 031.76

Total assets 8 916 703 443.84

Shareholders’ equity 3 942 867 433.65

Cash flow

Operations (plus) 2 591 499 012.62

Investments (minus) (1 534 462 909.26)

Financial operations (minus) (1 054 663 019.64)

Other information

Number of users (31 December 2008) 14 473 726

Number of employees (December 2008), including 2 persons on foreign contracts 3 602.1

Investments in fixed assets 1 421 156 391.75

Share capital 2 050 000 000.00

Selected financial ratios

Fixed Asset Turnover (Sales/Assets) 95.1%

Net Return on Sales

(Net result/ Sales) 16%

Return on Equity (Net result/ Equity) 34.5%

Liquidity ratio (Current assets – short-term prepayments)/ short-term liabilities 0.5

Increased liquidity ratio (Current assets – short-term prepayments-inventories)/ short-term liabilities 0.4

Selected financial data


T h e l a r g e s t



To the Shareholders and Supervisory Board of the Polkomtel S.A.We have audited the financial statements of the Polkomtel S.A. with its registered office in Warsaw, ul. Postępu 3, including:

introduction to the financial statements,

balance sheet drawn up as of 31 December 2008, with total assets and liabilities of PLN 8,916,703,443.84,

profit and loss account for the financial year from 1 January 2008 to 31 December 2008, disclosing net profit of

PLN 1,359,094,009.29,

statement of changes in shareholders’ equity for the financial year from 1 January 2008 to 31 December 2008, disclosing

an increase in equity in the amount of PLN 426,549,009.29,

cash flow statement for the financial year from 1 January 2008 to 31 December 2008, showing a net cash inflow of

PLN 2,373,083.72,

notes and explanations to financial statements

drawn pursuant to the provisions of the Accounting Act of 29 September 1994 (Journal of Laws no. 76/2002, item 694,

as amended). On 10 February 2009 we have issued an unqualified opinion on the full financial statements.

The preparation of the enclosed summary financial statements is the responsibility of the Management Board of the Com-

pany. Our task was to ensure the compliance of the summary financial statements with the full financial statements. In our

opinion, the attached summary financial statements were drawn in all material aspects in line with the full version of the

financial statements.

The full version of the financial statements, which was the subject of our audit, contains notes to the financial statements

which were not fully presented in the attached summary financial statements.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paulina Bednarczyk

Statutory Auditor

Reg. no.11083/7968

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

entity authorized to audit financial

statements, entered in the list of

authorized entities maintained by

the National Council of Statutory

Auditors (KRBR) under registration

number 73

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Persons representing the entity

Warsaw, 10 February 2009

drawn pursuant to the provisions of the Accounting Act of 29 September 1994 for the financial year from 1 January 2008 to 31 December 2008

On the basis of the full financial statements drawn up as of 31 December 2008, their abbrevieted version has been

drawn up, including:

1. Balance sheet drawn up as of 31 December 2008, with total assets and liabilities of PLN 8,916,703,443.84;

2. Profit and loss account for the financial year from 1 January 2008 to 31 December 2008, disclosing net profit of

PLN 1,359,094,009.29;

3. Statement of changes in shareholders’ equity for the financial year from 1 January 2008 to 31 December 2008, disclosing

an increase in equity in the amount of PLN 426,549,009.29,

4. Cash flow statement for the financial year from 1 January 2008 to 31 December 2008, showing a net cash inflow

of PLN 2,373,083.72.

Warsaw, 10 February 2009

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Jarosław Bauc

President of the Management Board

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Krzysztof Kilian

Vice President

of the Management Board

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Wojciech Dylewski

Member of the Management Board

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Miguel Marin


.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Bogusława Matuszewska


.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Martin Moorhouse


Statutory Auditor’s opinionSummary financial statements of Polkomtel S.A.


T h e l a r g e s t



balance as of 31.12.2008 31.12.2007

ASSETS

A. Non-current assets 7 350 346 412.08 7 065 105 707.88

1. Intangible assets 2 221 363 069.22 2 392 757 813.46

1.1 Research & development costs 0.00 0.00

1.2 Goodwill 0.00 0.00

1.3 Other intangible assets 2 145 500 993.31 2 329 918 475.69

1.4 Intangible assets not in use yet 75 862 075.91 62 839 337.77

2. Tangible assets 4 860 725 848.43 4 462 849 688.05

2.1. Property, plant and equipment 4 096 340 077.50 3 693 353 289.43

2.1.1. Lands (including perpetual usufruct) 30 902 825.48 27 253 522.72

2.1.2. Buildings, premises and civil engineering facilities 111 703 692.47 103 316 383.41

2.1.3. Technical equipment and machinery 3 882 824 601.64 3 480 719 346.15

2.1.4. Means of transport 17 682 503.53 16 683 204.33

2.1.5. Other property, plant and equipment 53 226 454.38 65 380 832.82

2.2. Assets under construction 764 158 211.96 769 363 864.59

2.3. Advances on assets under construction 227 558.97 132 534.03

3. Non-current receivables 0.00 0.00

3.1. From affiliates 0.00 0.00

3.2. Other 0.00 0.00

4. Non-current investments 20 504 853.43 0.00

4.1. Real property 0.00 0.00

4.2. Intangible assets 0.00 0.00

4.3. Non-current financial assets 20 504 853.43 0.00

4.3.1. In affiliates 20 504 853.43 0.00

4.3.2. Other 0.00 0.00

4.4. Other non-current investments 0.00 0.00

5. Non-current prepayments 247 752 641.00 209 498 206.37

5.1. Deferred tax 244 993 135.06 205 234 172.95

5.2. Other prepayments 2 759 505.94 4 264 033.42

B. Current assets 1 566 357 031.76 1 393 641 015.62

1. Inventory 192 777 185.07 198 694 347.61

1.1 Materials 3 166 872.17 2 363 813.15

1.2 Semi-finished products and work in progress 0.00 0.00

1.3 Finished products 0.00 0.00

1.4 Goods 189 610 312.90 196 330 534.46

1.5 Advances on deliveries 0.00 0.00

2. Current receivables 893 160 754.49 849 233 241.11

2.1 From affiliates 33 844 655.84 10 380 389.38

2.1.1. Trade receivables, maturing within: 33 844 655.84 10 380 389.38

2.1.1.1. up to 12 months 33 844 655.84 10 380 389.38

2.1.1.2. more than 12 months 0.00 0.00

2.1.2. Other 0.00 0.00

2.2 Receivables from other companies 859 316 098.65 838 852 851.73

2.2.1. Trade receivables repayable within: 814 261 519.32 793 275 233.17

2.2.1.1. up to 12 months 814 261 519.32 793 275 233.17

2.2.1.2. more than 12 months 0.00 0.00

2.2.2. Tax, subventions and social security receivables 27 275 047.66 36 186 456.54

2.2.3. Other 17 779 531.67 9 391 162.02

2.2.4. Sought before courts 0.00 0.00

3. Current investments 95 433 881.80 29 404 011.43

3.1. Current financial assets 23 944 675.07 21 571 591.35

3.1.1. In affiliates 0.00 0.00

3.1.2. Other 0.00 0.00

3.1.2.1. Shares 0.00 0.00

3.1.3. Cash and cash equivalents 23 944 675.07 21 571 591.35

3.1.3.1. Cash in hand 2 270 569.04 1 619 592.41

3.1.3.2. Cash in banks 20 506 287.77 18 209 305.57

3.1.3.3. Other cash and cash equivalents 1 167 818.26 1 742 693.37

3.1.3.4. Other cash assets 0.00 0.00

3.2. Other current investments 71 489 206.73 7 832 420.08

4. Current prepayments 384 985 210.40 316 309 415.47

Total assets 8 916 703 443.84 8 458 746 723.50

Balance sheet – assets


T h e l a r g e s t



balance as of 31.12.2008 31.12.2007

SHAREHOLDER’S EQUITY AND LIABILITIES

A. Equity 3 942 867 433.65 3 516 318 424.36

1. Share capital 2 050 000 000.00 2 050 000 000.00

2. Called-up share capital (negative value) 0.00 0.00

3. Equity shares (negative value) 0.00 0.00

4. Supplementary capital 533 459 365.80 424 904 956.67

4.1 Share premium 0.00 0.00

4.2 Statutory 533 459 365.80 424 904 956.67

5. Revaluation reserve 0.00 0.00

6. Other reserve capital 314 058.56 183 353.54

7. Retained earnings (loss) 0.00 0.00

8. Net profit (loss) 1 359 094 009.29 1 356 930 114.15

9. Deductions from net profit during the accounting year (negative value) 0.00 (315 700 000.00)

B. Liabilities and provisions for liabilities 4 973 836 010.19 4 942 428 299.14

1. Provisions for liabilities 571 815 031.05 449 639 892.11

1.1. Deferred tax provision 348 420 546.82 359 171 027.22

1.2. Provision for pensions and similar benefits 4 547 052.94 4 038 496.14

1.2.1. Non-current 4 335 320.19 3 841 807.67

1.2.2. Current 211 732.75 196 688.47

1.3. Other provisions 218 847 431.29 86 430 368.75

1.3.1. Non-current 50 720 602.33 28 876 762.12

1.3.2. Current 168 126 828.96 57 553 606.63

2. Non-current liabilities 885 567 824.98 774 152 324.02

2.1. To affiliates 0.00 0.00

2.2. To affiliates 885 567 824.98 774 152 324.02

2.2.1. Loans, bonds and other securities 0.00 0.00

2.2.2. Bank loans 0.00 0.00

2.2.3. Other financial liabilities 0.00 0.00

2.2.4. Other 885 567 824.98 774 152 324.02

3. Current liabilities 2 463 241 959.09 2 742 910 306.15

3.1. To affiliates 762 122.05 594 919.92

3.1.1. Trade payables maturing within: 762 122.05 594 919.92

3.1.1.1. up to 12 months 762 122.05 594 919.92

3.1.1.2. more than 12 months 0.00 0.00

3.1.2. Other 0.00 0.00

3.2. To other entities 2 457 607 897.74 2 737 292 332.10

3.2.1. Bank loans and credit 1 573 303 173.89 1 145 923 919.00

3.2.2. Issue of debt securities 0.00 454 293 131.36

3.2.3. Other financial liabilities 3 167 429.87 19 517 429.45

3.2.4. Trade payables maturing within: 590 049 968.32 631 609 992.37

3.2.4.1. up to 12 months 590 049 968.32 631 609 992.37

3.2.4.2. more than 12 months 0.00 0.00

3.2.5. Advances on deliveries received 0.00 0.00

3.2.6. Bills of exchange payable 0.00 0.00

3.2.7. Tax, customs and social security 210 650 640.17 417 315 606.06

3.2.8. Payroll 11 639.43 1 669.78

3.2.9. Other 80 425 046.06 68 630 584.08

3.3. Special funds 4 871 939.30 5 023 054.13

4. Accruals and deferred income 1 053 211 195.07 975 725 776.86

4.1. Badwill 0.00 0.00

4.2. Other accruals 624 689 223.64 599 931 723.64

4.2.1. Non-current 0.00 0.00

4.2.2. Current 624 689 223.64 599 931 723.64

4.3. Other deferred income 428 521 971.43 375 794 053.22

4.3.1. Non-current 0.00 0.00

4.3.2. Current 428 521 971.43 375 794 053.22

Total equity and liabilities 8 916 703 443.84 8 458 746 723.50

Balance sheet – liabilities


T h e l a r g e s t



for the period 01.01.2008 31.12.2008

01.01.2007 31.12.2007

I. Sales and sales equivalents, including: 8 482 085 193,95 7 799 020 455,35

• from affiliates 200 688 718.22 70 362 609.12

1. Net income from sale of products 8 318 371 507.60 7 623 507 020.37

1.1. Income from sale of goods 0.00 0.00

1.2. Income from sale of services 8 318 371 507.60 7 623 507 020.37

2. Products movements 0.00 0.00

3. Company’s own work capitalized 0.00 0.00

4. Net income from sale of goods and materials 163 713 686.35 175 513 434.98

4.1. Income from sale of telephones 153 313 350.10 165 076 767.90

4.2. Income from sale of other goods and materials 10 400 336.25 10 436 667.08

II. Operating costs 6 623 637 994.96 6 106 199 468.62

• to affiliates 121 840 846.18 22 442 656.28

1. Depreciation 1 211 220 245.29 1 053 883 568.24

2. Materials and energy consumed 74 194 047.65 63 028 502.69

3. Third party services 3 111 271 298.18 3 049 698 865.59

4. Taxes and fees 58 228 663.78 48 585 892.51

5. Payroll 352 567 909.97 301 768 912.78

6. Social security and other employee benefits 65 414 293.60 62 399 998.82

7. Other costs by type 303 390 723.33 294 963 963.72

8. Value of goods and materials sold 1 447 350 813.16 1 231 869 764.27

8.1. Value of telephones sold 1 263 123 777.29 1 075 269 986.19

8.2. Value of other goods 184 227 035.87 156 599 778.08

III. Profit (loss) on sales (I – II) 1 858 447 198.99 1 692 820 986.73

IV. Other operating income 333 640 069.59 251 485 771.96

1. Profit on disposal of non-financial non-current assets 259 705.56 1 702 770.57

2. Subventions 0.00 0.00

3. Other operating income 333 380 364.03 249 783 001.39

V. Other operating costs 305 640 324.14 174 746 317.19

1. Loss on disposal of non-financial non-current assets 0.00 0.00

2. Revaluation of non-financial assets 93 858 803.55 68 989 380.19

2.1. Allowances for revaluation of receivables 82 384 042.30 60 099 473.11

2.2. Other revaluation allowances 11 474 761.25 8 889 907.08

3. Other operating costs 211 781 520.59 105 756 937.00

VI. Profit (loss) on operations (III + IV – V) 1 886 446 944.44 1 769 560 441.50

VII. Financial income 138 431 684.85 119 555 996.89

1. Dividends and interest in profits received, including: 0.00 0.00

• from affiliates 0.00 0.00

2. Interest received, including: 37 357 538.98 31 527 305.56

• from affiliates 0.00 0.00

3. Profit on disposal of investments 12 319 977.48 10 415 859.69

4. Revaluation of investments 80 006 786.23 25 605 323.06

5. Other 8 747 382.16 52 007 508.58

5.1. Positive exchange rate differences – exchange rate gains 0.00 42 105 024.04

5.2. Other financial income 8 747 382.16 9 902 484.54

5.2.1. Other financial income 1 469 350.62 535 382.52

5.2.2. Interest accrued 7 278 031.54 9 367 102.02

VIII. Financial costs 349 292 951.51 187 400 939.90

1. Interest including: 169 221 099.38 144 756 424.25

• for affiliates 0.00 0.00

1.1. Interest on credits and loans 89 756 906.29 66 167 404.86

1.1.1. Interest on credits and loans accrued 7 590 267.13 3 375 572.62

1.1.2. Interest on credits and loans paid 82 166 639.16 62 791 832.24

1.2. Other interest 79 464 193.09 78 589 019.39

1.2.1. Other interest accrued 47 036 418.20 48 585 971.22

1.2.2. Other interest paid 32 427 774.89 30 003 048.17

2. Loss on disposal of investments 0.00 19 292 844.00

3. Revaluation of investments 10 900 000.00 13 852 488.49

4. Other 169 171 852.13 9 499 183.16

4.1. Negative exchange rate differences – exchange rate loss 161 865 239.24 0.00

4.2. Other financial costs 7 306 612.89 9 499 183.16

IX. Profit (loss) on business (VI+VII-VIII) 1 675 585 677.78 1 701 715 498.49

X. Extraordinary result (X.1.-X.2.) 0.00 0.00

1. Extraordinary earnings 0.00 0.00

2. Extraordinary loss 0.00 0.00

XI. Gross profit (loss) (IX + X) 1 675 585 677.78 1 701 715 498.49

XII. Income tax 316 491 668.49 344 785 384.34

1. Income tax 367 001 111.00 463 761 656.00

2. Difference between balance sheet and payable income tax (50 509 442.51) (118 976 271.66)

XIII. Other mandatory deductions from profit (increases in loss) 0.00 0.00

XIV. Net profit (loss) 1 359 094 009.29 1 356 930 114.15

Profit and loss account


T h e l a r g e s t



for the period 01.01.2008 31.12.2008

01.01.2007 31.12.2007

I. Equity at the beginning of the period (opening balance) 3 516 318 424.36 3 506 853 310.21

a) changes in accounting policy 0.00 0.00

b) adjustments of major errors 0.00 0.00

I.a. Adjusted equity at the beginning of the period (opening balance) 3 516 318 424.36 3 506 853 310.21

1. Share capital at the beginning of the period 2 050 000 000.00 2 050 000 000.00

1.1. Changes in share capital 0.00 0.00

a) increase 0.00 0.00

b) decrease 0.00 0.00

1.2. Share capital at the end of the period 2 050 000 000.00 2 050 000 000.00

2. Called-up share capital at the beginning of the period 0.00 0.00

2.1. Change in called-up share capital 0.00 0.00



2.2. Called-up share capital at the end of the period 0.00 0.00

3. Equity shares at the beginning of the period 0.00 0.00



3.1. Equity shares at the end of the period 0.00 0.00

4. Supplementary capital at the beginning of the period 424 904 956.67 335 171 347.00

4.1. Changes in supplementary capital 108 554 409.13 89 733 609.67

a) increase (by virtue of) 108 554 409.13 89 733 609.67

- share premium 0.00 0.00

- distribution of profits (statutory) 108 554 409.13 89 733 609.67

b) decrease (by virtue of) 0.00 0.00

- coverage of loss 0.00 0.00

4.2. Supplementary capital at the end of the period 533 459 365.80 424 904 956.67

5. Revaluation reserve at the beginning of the period 0.00 0.00

5.1. Changes in revaluation reserve 0.00 0.00



5.2. Revaluation reserve at the end of the period 0.00 0.00

6. Other reserves at the beginning of the period 183 353.54 11 842.30

6.1. Changes in other reserves 130 705.02 171 511.24

a) increase (by virtue of) 130 705.02 171 511.24

- distribution of profits 130 705.02 171 511.24


- dividend 0.00 0.00

6.2. Other reserves at the end of the period 314 058.56 183 353.54

7. Retained earnings at the beginning of the period 1 041 230 114.15 1 121 670 120.91

7.1. Retained earnings at the beginning of the period 1 041 230 114.15 1 121 670 120.91



7.2. Adjusted retained earnings at the beginning of the period 1 041 230 114.15 1 121 670 120.91

a) increase (by virtue of) 0.00 0.00

- distribution of profits 0.00 0.00

b) decrease (by virtue of) 1 041 230 114.15 1 121 670 120.91

- allocation to supplementary capital 108 554 409.13 89 733 609.67

- allocation to other reserves 130 705.02 171 511.24

- coverage of retained loss 0.00 0.00

- dividend 932 545 000.00 1 031 765 000.00

7.3. Retained earnings at the end of the period 0.00 0.00

7.4. Retained loss at the beginning of the period 0.00 0.00



7.5. Adjusted retained loss at the end of the period 0.00 0.00

a) increase (by virtue of) 0.00 0.00

- carryforward of retained loss for coverage 0.00 0.00

b) decrease (by virtue of) 0.00 0.00

- coverage from distributed profits 0.00 0.00

7.6. Retained loss at the end of the period 0.00 0.00

7.7. Retained profit (loss) at the end of the period 0.00 0.00

8. Net result 1 359 094 009.29 1 041 230 114.15

a) net profit 1 359 094 009.29 1 356 930 114.15

b) net loss 0.00 0.00

c) deductions from profit 0.00 (315 700 000.00)

II. Equity at the end of the period (closing balance) 3 942 867 433.65 3 516 318 424.36

Statement of changes in shareholder’s equity


T h e l a r g e s t



for the period 01.01.2008 31.12.2008

01.01.2007 31.12.2007

A. CASH FLOW FROM OPERATIONS

I. Net profit (loss) 1 359 094 009.29 1 356 930 114.15

II. Total adjustments 1 232 405 003.33 1 211 829 715.69

1. Depreciation 1 212 297 786.66 1 054 652 663.48

2. Exchange rate (gains) losses 0.00 0.00

3. Interest and shares in profits (dividends) 86 319 092.33 70 320 688.37

4. Profit (loss) on investments (75 062 844.87) 4 644 482.47

5. Changes in provisions 102 368 822.35 (55 054 233.12)

6. Changes in inventories 5 917 162.54 (37 217 017.27)

7. Changes in receivables (43 927 513.38) (172 990 175.98)

8. Changes in current payables (other than loans and credits) (26 062 690.95) 212 875 843.04

9. Changes in prepayments and accruals (29 444 811.35) 135 406 214.96

10. Other adjustments 0.00 (808 750.26)

III. NET CASH FLOW FROM OPERATIONS (A.I.+/- A.II.) 2 591 499 012.62 2 568 759 829.84

B. CASH FLOW FROM INVESTMENTS

I. Investment revenues 88 881 963.20 43 322 246.38

1. Disposal of intangible assets and tangible non-current assets 7 371 766.80 4 098 417.355

2. Disposal of investment into real property and intangible assets 0.00 0.00

3. From financial assets including: 0.00 1 600 000.00

a) in affiliates 0.00 1 600 000.00

b) other 0.00 0.00

• disposal of financial assets 0.00 0.00

• dividends and shares in profits 0.00 0.00

• interest 0.00 0.00

• other revenues from financial assets 0.00 0.00

4. Other revenues from investments 81 510 196.40 37 623 829.03

II. Expenses on investments (1 623 344 872.46) (1 568 608 053.18)

1. Acquisition of intangible assets and tangible non-current assets (1 526 140 300.35) (1 517 926 044.02)

2. Investments in real property and intangible assets 0.00 0.00

3. On financial assets, including: (31 404 853.43) 0.00

a) in affiliates (31 404 853.43) 0.00

b) other 0.00 0.00

• acquisition of financial assets 0.00 0.00

• long-term loans extended 0.00 0.00

4. Other investment expenses (65 799 718.68) (50 682 009.16)

III. NET CASH FLOW FROM INVESTMENTS (B.I.- B.II.) (1 534 462 909.26) (1 525 285 806.80)

C. CASH FLOW FROM FINANCIAL OPERATIONS

I. Proceeds from financial operations 3 146 918 742.74 6 802 690 864.36

1. Net proceeds from issue of shares and other equity instruments, and additional payments to capital

0.00 0.00

2. Credits and loans 1 823 211 874.10 2 888 083 252.71

3. Issue of debt securities 1 323 706 868.64 3 914 607 611.65

4. Other financial revenues 0.00 0.00

II. Expenses on financial operations (4 201 581 762.38) (7 844 757 350.14)

1. Acquisition of equity shares 0.00 0.00

2. Dividend and other payments to owners (938 039 550.60) (1 341 970 449.40)

3. Payments to owners by virtue of distribution of profit other than dividend 0.00 0.00

4. Repayments of credit and loans (1 400 000 000.00) (2 400 000 000.00)

5. Redemption of debt securities (1 778 000 000.00) (4 030 000 000.00)

6. Other financial liabilities 0.00 0.00

7. Financial leasing payments 0.00 0.00

8. Interest (85 542 211.78) (72 786 900.74)

9. Other financial expenses 0.00 0.00

III. NET CASH FLOW FROM FINANCIAL OPERATIONS (C.I. – C.II.) (1 054 663 019.64) (1 042 066 485.78)

D. TOTAL NET CASH FLOW (A + / – B + / – C) 2 373 083.72 1 407 537.26

E. CASH BALANCE CHANGE 2 373 083.72 1 407 537.26

• including change in cash balance due to exchange rate differences 51 382.16 (27 090.49)

F. CASH AT THE BEGINNING OF THE PERIOD 21 571 591.35 20 164 054.09

G. CASH AT THE END OF THE PERIOD (F + / – D) 23 944 675.07 21 571 591.35

• with a limited availability 15 263 085.62 13 129 783.32

Cash flow statement


T h e l a r g e s t



From the very beginning of its operations, Polkomtel S.A. has been implementing the corporate social responsibility princi-ples, through participation in socially and economically important aspects of Polish people’s lives. Strategic goals are imple-mented through sponsorship, support for initiatives in the field of safety, education, sports, health protection as well as charity projects.

In 2008, the Company was in-

volved in the following pro-social

projects:

Social responsibility

Cooperation with volunteer

emergency services

Polkomtel S.A., under its sponsor-

ing strategy, has been supporting

organizations that save human life

and health since 2000. The year

2008 was another year during

which the Company continued co-

operation with such organizations

under multi-annual agreements.

Support for these organizations is

not limited solely to providing fi-

nancial means for the implementa-

tion of their statutory goals. Most

importantly, Polkomtel S.A. enables

them to profit from state-of-the-

art telecommunication and IT so-

lutions. In 2008, the coordination

centers of Integrated Rescue Sys-

tem received several thousand calls

to the emergency numbers – on the

waterside 0 601 100 100, and in

the mountains 0 601 100 300. The

most important projects in the area

of technological support for the

emergency services, implemented

in 2008, included:

The Integrated Weather Warning

System in the Mazury Lake Dis-

trict, which enables easy and di-

rect access to weather forecasts

and warnings on upcoming bad

weather conditions in the Maz-

ury Lakes Waterway.

Replacement of hardware

and software in the coordina-

tion centers (located in Sopot,

Giżycko, Wrocław, Rabka, Zako-

pane) to improve effectiveness

of receiving calls and to acceler-

ate rescue actions in the moun-

tains and on water.

Development of the Integrated

Rescue System – implementation

of the so-called “external posi-

tions” in the central stations of re-

gional GOPR groups. Coordination

positions in all groups of the GOPR

will allow the rescuers to fully uti-

lize the capabilities offered by the

Integrated Rescue System.

Construction of a vehicle moni-

toring system for TOPR. This

project will improve coordina-

tion of actions undertaken by

the TOPR rescuers, and will im-

prove their safety in the course

of rescue actions.

116 111 – Helpline for Children

and Youth

In November 2008 the first Polish

toll-free helpline for children and

youth was set up in cooperation

between Polkomtel S.A. and the

„Nobody’s Children” Foundation.

The number – 116 111 – serves all

children and young people who

need support, care and protection.

The helpline enables the callers

who find themselves in difficult

situations, to seek contact with

trained professionals. The 116 111

In 2008, the coordination centers of Integrated Rescue System received several thousand calls to the emergency numbers – on the waterside 0 601 100 100, and in the mountains 0 601 100 300

Corporate social responsibility and sponsorship activity


T h e l a r g e s t



helpline is manned by qualified

psychologists and educators, who

are able to provide the young

people with professional advice

in crisis situations. In order to set

up the helpline, Polkomtel S.A.

developed a special technologi-

cal platform, thanks to which the

number 116 111 is available to

all callers in need, regardless of

the mobile network that they use.

The Polkomtel S.A. network has

also provided the Foundation with

a professional call center to serv-

ice the helpline.

„To See the Sea” – a sailing

cruise for handicapped persons

In August 2008, thanks to the co-

operation between Polkomtel S.A.

and the “Pirates’ Nest” Foundation,

the sailing ship “Zawisza Czarny”

left the Gdynia harbor with a crew

of 32 – 16 fully capable, and 16 vis-

ually handicapped crew members.

In the cruise covering the Gdynia –

Bergen – Den Helder route, the vis-

ually handicapped crew members

could experience the challenges,

efforts and joys of sailing. The

sailing ship was adapted to man-

ning by blind persons, by adding

a sound system to the navigation

devices. Polkomtel S.A. was the

Main and Technological Sponsor

of this project. Employees of the

Company have also participated

in preparatory and organizational

work, on a volunteer basis.

Great Orchestra

of Christmas Charity

In 2008, similarly as during the pre-

vious years, the Company provided

organizational and technological

assistance for the Finale of the

Great Orchestra of Christmas Char-

ity. Every year, auctions during the

Finale are supported by employ-

ees of the Organizational Division

of the Company – volunteers who

work the hotline of television auc-

tion. Polkomtel S.A. provides the

organizers also with a batch of test

telephones, launches a toll-free

number for charity SMS messages

to collect money, and provides val-

uable objects for the auction.

Sponsorship activities

Culture

In 2008, Polkomtel S.A. continued

its activities to protect and pro-

mote the national cultural heritage,

by supporting valuable and socially

relevant initiatives and projects.

These projects included:

Patronage for the National

Museum in Warsaw;

Plus Camerimage International

Film Festival of the Art of

Cinematography;

International open-air festival,

Jazz in the Old Town;

Festival of Dialogue of Four

Cultures;

The Maciej Szumowski

competition for reporters

„Polska zza siódmej miedzy”;

Summer Opera Festival in

Krakow;

The Summer Scene in Warsaw’s

Lapidarium Theater.

The National Museum in Warsaw

Cooperation between Plus net-

work and the National Museum in

Warsaw goes back to the memo-

rable exhibition of the French

impressionists and post-impres-

sionists from the collection of

Parisian Musee d’Orsay, entitled

“From Manet to Gaugin”. This ex-

hibition was held in 2001 and was

declared the Museum Event of the

Year. The most important project

implemented in 2008 by the Na-

tional Museum in Warsaw, with the

support of Polkomtel S.A., was the

hugely popular exhibition “Orien-

tal motifs in the painting, drawing

and graphic in Poland in the 19th

and 1st half of the 20th century”.

Due to immense interest among

viewers, the exhibition was pro-

longed by two weeks.

Plus Camerimage

Polkomtel S.A. has been cooper-

ating with the CAMERIMAGE Inter-

national Film Festival of the Art of

Cinematography for several years.

In 2007, Polkomtel S.A. became

the titular sponsor – the Festival

changed its name to Plus Camer-

image. Plus Camerimage is an ex-

tremely important event for the

movie world. The Festival hosts

filmmakers from all over the world,

and the awards are a recognition

for the exceptional cinematograph-

ic achievements.

The international open-air festival

Jazz in the Old Town

The summer jazz festival that takes

place in Warsaw’s Old Town is one

of the most popular and the largest

- in terms of audience size - such

events in Poland. Cooperation of

Polkomtel S.A. and its organizers

was initiated in 1997, and has been

continued ever since. Thanks to the

ticketless formula, the broad audi-

ence has the opportunity to listen

to many Polish and international

jazz stars.

Festival of Dialogue of Four Cultures

The Festival of Dialogue of Four

Cultures, organized since 2002 in

Łódź , is meant to promote dialogue

among cultures (especially those

which formed the old Łódź : Polish,

German, Jewish and Russian), to

stimulate artistic life in the city

and to build its image as a place

with fascinating past, seeking its

present identity through opening

to other cultures and outlooks.

Every year, auctions during the Finale are supported by employees of the Organizational Division of the Company

– volunteers who work the hotline of television auction.

Plus Camerimage is an extremely important event for the movie

world. The Festival hosts filmmakers from all

over the world, and the awards are a recognition

for the exceptional cinematographic

achievements.


T h e l a r g e s t



„Polska zza siódmej miedzy” – the

Maciej Szumowski competition for

reporters

This competition, organized since

2006 by Polskapresse, TVN and the

Association of Maciek Szumowski’s

Friends, is directed at young journal-

ists. The honored works can be used as

screenplays for TV reports at the TVN

television channel. Polkomtel S.A. is

the patron of the competition, and

sponsor of the awards.

The Summer Opera Festival

in Krakow

The Summer Opera Festival in Kra-

kow is one of the most important cul-

tural events, taking place regularly

since 1997. This festival, with recit-

als of outstanding Polish and foreign

solo singers, takes place in the sum-

mer, at the Opera in scenic open-air

settings. In recognition for its many

years of support for the Krakow Op-

era’s undertakings, Polkomtel S.A.

was rewarded with the prestigious

title VOX OPERA 2007.

Summer Scene at the LAPIDARIUM

The Summer Scene at the Lapidar-

ium Theater of the Warsaw Histori-

cal Museum is an annual series of

concerts and shows, enjoying im-

mense popularity among the audi-

ence. The choice of repertoire and

the exceptional climate of the place

guarantee unique impressions.

Cooperation with the Opoka

Foundation

In 2008, Polkomtel S.A. dynamically

developed its cooperation with the

Opoka Foundation which operates

the largest Catholic web portal in

Poland – www.opoka.org.pl. Dur-

ing the past year, a community por-

tal “e-pilgrimage” was developed,

which contains the Virtual Pilgrim-

age Map, guide on pilgrimages,

e-letters from pilgrims and MMS gal-

leries. During the 2008 pilgrimage

season, the portal had over 1 million

100 thousand views. Polkomtel S.A.

is the portal’s technological partner.

The purpose of cooperation with

the Foundation is to educate and to

promote modern technologies in the

Catholic Church community.

Sports

Volleyball

In 2008, Polkomtel S.A. continued

its unique, on a European scale,

volleyball project that has been

ongoing since 1998 and includes

the sponsorship of:

Poland’s women’s and men’s

national teams;

titular sponsorship for the

volleyball league – PlusLiga

for men’s teams and PlusLiga

Kobiet for women’s teams;

all youth national teams;

titular sponsorship of Poland’s

Women Beach Volleyball Cham-

pionship – the Simplus Cup;

Poland’s disabled persons na-

tional team.

I 2008, Polkomtel S.A. entered

into two important agreements – in

April one on titular sponsorship

for the Polish national volleyball

league, and in August – on a con-

tract for the support of both Polish

national teams. Cooperation with

the Professional Volleyball League

covers five seasons and will con-

tinue until 2013. Having in mind

appropriate preparation of the

players for the World Champion-

ships that will be held in Poland in

2014, the Company signed a con-

tract for the sponsorship of both

National Teams until 2014.

P olkomtel S.A. has again actively

participated in the organization of

the World League and World Grand

Prix, turning these events into ex-

ceptional spectacles. Matches of

the national team had full audienc-

es in the sports centers, and many

millions viewers at their TV sets.

T he volleyball interests of

Polkomtel S.A. are completed by the

eighth Women Beach Volleyball Cham-

pionship. This event is covered by titu-

lar sponsorship, under the Simplus Cup

name. As previously, it attracted large

numbers of fans spending the summer

in the most attractive locations at the

seaside or in the Mazury Lake District.

Thanks to intense activities of the

Company targeted at promotion of this

sport, beach volleyball became a popu-

lar leisure in the summer.

T he involvement of Polkomtel S.A.

as sponsor of the Polish volleyball

brought measurable benefits for the

Company, yielding a return rate that

many times exceeded the financial

investments made into this project.

Polish sports fans have a deeply in-

grained image of Polkomtel S.A. as

the sponsor of Polish volleyball. This

is another element of the company’s

competitive advantage.

Tour de Pologne

Tour de Pologne is one of the old-

est and the most important sports

events in Poland. This race belongs

to the Pro Tour UCI calendar, one of

the most prestigious cycling events

worldwide. Polkomtel S.A. partici-

pates in the organization of this

event since 1996, as the Official

Sponsor and Technological Part-

ner. The 65th Tour de Pologne was

one of the most significant sports

events in terms of organization and

logistics, taking place in Poland. It

was attended by competitors from

30 countries, representing the 18

world’s best cycling teams of UCI

Polkomtel S.A. has again actively participated in the organization of the

World League and World Grand Prix, turning these

events into exceptional spectacles.

Polkomtel S.A. became the Partner of the Foundation Institute for Eastern Studies – the organizer of the 18th Economic Forum in Krynica Zdrój.



Pro Team. For the first time in the

Pro Tour history, the Polish national

team participated in the 65th Tour

de Pologne.

Tennis

In 2008, Polkomtel S.A. was in-

volved in the following projects:

ATP Tour Porsche Open, Poznań

– Polkomtel S.A.: Main Sponsor/

Technological Partner

Porsche Open is one of the most

prestigious tennis tournaments

organized in Poland, of the Chal-

lenger ATP rank. This is not just the

tournament itself, but an impres-

sive, week-long feast of tennis,

culture and art, as well as a social

event of the highest level.

KGHM Polish Indoors – an ATP

tennis tournament, Wrocław

– Polkomtel S.A.: Main Sponsor/

Technological Partner

Since its inception in 2000, the

KGHM Polish Indoors tournament

has become a prestigious event

and one of the most important ten-

nis tournaments in Poland. It has

gained a significant and perma-

nent position in the international

calendar of tennis tournaments.

The International Tennis Tour-

nament ATP Pekao Open 2008,

Szczecin – Polkomtel S.A.: Of-

ficial Sponsor / Technological

Partner, and titular sponsor of

an accompanying event, Plus

Tennis Music Festival

The Pekao Open tournament is one

of the largest sports events taking

place in Poland. Since 1999, it is

seen as the best challenger-level

tennis event in the world.

Symposia and conferences

Economic Forum in Krynica Zdrój

Polkomtel S.A. became the Partner

of the Foundation Institute for East-

ern Studies – the organizer of the

18th Economic Forum in Krynica

Zdrój. An event that accompanied

the Forum in 2008 was the Invest-

ment Forum in Tarnów, held under

the honorary patronage of the Min-

ister of Treasury. The forum was

organized under the slogan, „Eu-

ropean dilemmas. Central Europe

– a partner, or a dummy?”

First Polish Product Forum

The purpose of the Forum organ-

ized in Gdansk was the exchange of

opinions and experiences on Polish

national brands. In the nationwide

research conducted by TNS OBOP

the respondents were asked which

brands of Polish products they feel

proud of and which brands they

would like to boast about abroad.

Plus was one of the brands named

in the survey.

Conference „Cities on the Internet”

In June 2008, Polkomtel S.A. spon-

sored the conference “Cities on the

Internet” – an annual meeting of

the leaders of the e–development

of the public sector, a forum for

exchange of information on Polish

and European good practices and

experiences in the development of

the information society. The con-

ference focused on the debate on

strategic relevance of undertakings

and projects that guarantee the

necessary conditions for the rapid

civilization development of Polish

cities, villages and regions.

The 65th Tour de Pologne was one of the

most important sports events in Poland. It

was attended by competitors from 30 coun-

tries, representing the 18 world’s best cy-

cling teams of UCI Pro Team. For the first

time in the Pro Tour history, the Polish na-

tional team participated in the 65th Tour de

Pologne.

In the Eurobrand 2008 ranking, prepared under commission of the European

Brand Institute in Vienna, Plus was named as the highest valued Polish corpo-

rate brand.

The valuation was made on the basis of financial results, management culture

and perception by consumers.

Polkomtel S.A. is the only mobile network named by Poles in surveys of prod-

ucts that are Poland’s showcases. In the nationwide research conducted in

July 2008 over Poland, TNS OBOP asked the respondents about the brands of

Polish products they feel proud of, the brands they would like to boast about

abroad, and the products of brands they actually use.

Simplus and Plus received honorable mention in the second issue of independ-

ent Gold Standard research on the satisfaction of customers with the telecom-

munication sector. From among all participating mobile telephony brands,

Simplus received the highest rating from users.

Polkomtel S.A. was named Solid Employer 2008 in the prestigious compe-

tition organized by the Media Partner Group. The competition rewards en-

terprises who stand out in terms of meeting their obligations towards their

employees.

During the 5th Sports and Business Gala organized as part of Sports Market-

ing Days in Warsaw, the Sports Business Awards Demes 2008 awards were

presented. Polkomtel S.A. received the award for the Best Sports Sponsor, in

recognition of the dynamic development of its Volleyball project, which con-

tributes to the development of Polish sport.

Eurobrand 2008

Plus as Poland’s showcase product

Gold Standard

Solid Employer

The Demes award

The Impactor award

Gold Effie – Effie Awards 2008 Poland

During the Impactor Gala, Polkomtel S.A. received the Impactor award 2008,

granted by the Polish media and advertising industry for the Most Admired

Advertiser of the Year. The competition’s Chapter stated in its verdict that the

award was granted for “creativity and fresh approach to advertising, with the

use of all media”.

The marketing communication campaign of the Plus and MixPlus brands, fea-

turing the Mumio cabaret group and prepared by the PZL advertising agency,

received the Gold Effie award in the Long Term category.

Effie Awards Poland are granted each year, in recognition of effectiveness of

marketing communication.

During the annual „Mobile Internet” gala, Polkomtel received the following awards:

Category: Product of the Year

For the fastest mobile Internet in Poland – iPlus

Category: Innovation of the Year

For launching a payment system that enables payment for goods and serv-

ices directly from the bank account via the mobile phone (this award was

granted also to mPay and CitiHandlowy)

Category – Socially Responsible Operator of the Year 2008

For the implementation of the Helpline for Children and Youths 116 111,

for multi-annual support for the WOPR (Water Volunteer Rescuee Service),

TOPR (Tatra Volunteer Rescue Service) and GOPR (Mountain Volunteer Res-

cue Service), and for patronage over numerous cultural events.

Category: Business Man of the Year 2008

For the effective management of almost 1000 of sales outlets, improve-

ment of relations with trade partners, and for the development of an incen-

tive system, the title of Business Man of the Year 2008 was awarded to Mr.

Tomasz Sękalski, Director for Agency Network Sales at Polkomtel S.A.

„Virtual Telephones” – the Polish IT „Oscars”


68 69RAPORT ROCZNY POLKOMTEL S.A. 2008 RAPORT ROCZNY POLKOMTEL S.A. 2008

Awards

Polkomtel S.A.

ul. Postępu 3, 02-676 Warszawa

tel. +48 (0) 22 426 1000, fax +48 (0) 22 426 0103

Customer Service: tel. +48 601 102 601

Sales and information: tel. 0 801 400 601

www.polkomtel.com.pl, www.plus.pl Proj

ect:

Stu

dio

Gra

ficzn

e FI

LE, w

ww

.file

.com

.pl

annual report polkomtel s.a. · cost control. yours sincerely jarosław bauc president of the...

Documents